Investing on Equity Markets Investing in small-cap stories on the ASX (Australian Stock Exchagne) in 2025 can seem overwhelming, especially for beginners. With the abundance of information available, it is crucial to know how to sift through it effectively to make informed decisions. As I have been in this industry for over 30 years and as an investor prior to the 1987 stockmarket crash, this blog will just outline some of my own experience and insights as to what has wroked for me over those years. This is not a recommendation nor a blog that is a receipe for successful investing. At best, it will be a guide through various strategies to consider as you plan your investing path with your own financial choices. For those investors who swim in the small-cap sector, you may think that your requirements may be vastly different to those that "invest" in the higher-cap companies. In my opinion, I would say that it is not. The need to understand the stock and all the parts that make that stock a business is fundamentally the same. It is the scale of the information that is different. Investing in ASX Small-Cap Stories. Informed decisions stem from a thorough understanding of market dynamics and personal financial goals. Instead of reacting to trends or news headlines, successful investors base their choices on research and evidence. They analyse data, assess risks, and evaluate the potential of various assets. To illustrate the importance of informed decision-making, let's consider the example of two investors: Investor A buys stocks based on a hot tip from a friend, while Investor B conducts detailed research on the company's performance, market conditions, and future potential. A close-up view of stock market data offers insight for informed investing. Investor A may make short-term gains, but without a strategy, they risk significant losses when the market turns. In contrast, Investor B, who invests with a solid understanding, is more likely to achieve sustainable growth over time. Research and Analysis for Informed Decisions The first step in making informed decisions is conducting comprehensive research. This involves collecting relevant data about the investment landscape, specific industries, and individual assets. A good approach is to use various resources to broaden your perspective. Start with financial news outlets, corporate earnings reports, and investment analysis platforms. For example, consider sites that offer detailed company profiles, stock analysis, and investment insights. Eye-level view of an analyst reviewing market research for informed investment decisions. According to a survey by the Financial Industry Regulatory Authority (FINRA), nearly 80% of successful investors spend time analysing their investments. This research allows them to understand key metrics like price-to-earnings ratios, dividend yields, and company growth rates. For those investors who are looking at the small-caps, be aware of platforms that are promotive, look out for content that is balanced and create a discussion. There are many platforms out in the space that merely repeat the content from the companies. Look for content providers who create organic discussions and are not promoting the company's highlights. Actionable Tip: Create a checklist of crucial metrics to evaluate each potential investment, and track your findings systematically. Setting Clear Investment Goals Another vital factor in making informed decisions is having clear, realistic investment goals. It is important to identify what you want to achieve with your investments, whether it's saving for retirement, purchasing a home, or funding a child's education. Your goals will influence the types of investments you pursue and your risk tolerance. For instance, if your goal is long-term wealth accumulation, you might lean towards stocks or index funds, willing to withstand short-term fluctuations. Conversely, if you need access to your funds in the near term, you might prefer bonds or high-yield savings accounts. Consider this insightful statistic: A study conducted by the CFA Institute found that 70% of investors who set clear goals were more likely to achieve their desired financial outcomes. Diversification: The Key to Mitigating Risk Diversification is one of the most effective strategies for minimising risk in an investment portfolio. By spreading investments across various asset classes, sectors, and geographic regions, you reduce the impact that any single investment could have on your overall portfolio. For example, instead of investing solely in technology stocks, you could allocate funds to real estate, commodities, and international markets. This mixed approach helps to stabilize your returns and build a more resilient investment strategy over time. A wide-angle view of a portfolio pie chart illustrates diversification strategies. Moreover, research from Morningstar reveals that well-diversified portfolios tend to outperform less diversified ones in the long run. This reinforces the idea that a balanced approach can lead to more sustainable growth. As a serial investor in the small-cap sector, the diversification for us will still be focusing on a spread of sectors, but for those that play solely in one sector, such as the small-cap mineral resources, diversification will come in the form of different commodities and/or different stages of exploration and mining. ASX Resources' Sector Heat Map (source: commsec) Actionable Tip: Review your portfolio regularly to ensure it reflects your risk tolerance and investment goals, making adjustments as necessary. Learning from Mistakes and Successes Every investor will face ups and downs. The key to becoming a successful investor in the mineral resource sector is to learn about the company in regards to the management and the major shareholders. The small-cap mineral resource sector is notorious for share prices taking off and then leaving the buyers at the top of the run to hold on to the baby. To master the roller coaster ride, you will have to talk to industry participants, and one of the best ways is to get onto a couple of social media platforms like X and LinkedIn. Look for the people who post information, but beware of those who are just posting for promotions. I have to admit that there are not a lot that I know who I would recommend, except for Roland Gotthard, who is a serial poster on LinkedIn. Roland is a straight as you are going to get, and he is very capable in a technical aspect. A typical post from Roland Gothard. I am sure there are more that are in the same category, but none that I could name as I don't know them intimately. I have had several conversations with Roland, and I have met him in person. I feel his genuine intent, and that is the only reason I would recommend his content. In my experience, most of the time my investment failed, I made the wrong timing decision in an exit, so learning from your mistakes is a very important trait to develop. Research for entry and timing for exit. I was told once, and this theory has never failed me: Always have a reason for entry, and when that reason changes for whatever reason, that is your exit trigger. Statistic Alert: According to a report by TD Ameritrade, over 60% of investors believe that their past mistakes have ultimately made them better at investing. Utilising Technology for Information In today's fast-paced environment, using technology can vastly improve your decision-making process. There are numerous tools available designed to assist investors in analysing data, tracking trends, and managing portfolios efficiently. Online platforms and apps offer everything from market news alerts to real-time stock tracking. For example, services like Bloomberg or Yahoo Finance provide updates that can help you stay on top of the market changes. Additionally, several robo-advisors use algorithms to create personalized investment strategies based on your goals and risk tolerance. This technology can provide automated insights, letting you focus on strategy and long-term growth. Actionable Tip: Explore different investment apps and tools to find the ones that suit your style best. Make technology work for you. Building a Support Network Lastly, consider the power of a strong support network. Surrounding yourself with knowledgeable individuals can accelerate your learning and provide new perspectives. This network can include family, friends, financial advisors, or even online communities where you can discuss investment strategies. One significant advantage of such networks is the ability to share experiences and insights. Engaging with others allows you to ask questions and gain access to resources you might not have encountered alone. Important Note: Ensure that the individuals you turn to for advice are experienced and knowledgeable in investing practices. Using trusted resources can further enhance the quality of the support you receive. Concluding Comments from Samso Investing wisely is a skill that requires continuous learning, research, and strategic planning. By implementing the strategies discussed, you can significantly improve your decision-making process. Remember, informed decisions come from a combination of data analysis, setting clear goals, mitigating risks through diversification, learning from past experiences, leveraging technology, and building a supportive network. The underlying habit for investors, based on my experience, is to be patient. My best investments have come from long-term positions that are measured in years. There are short-term wins, but again, with my experience, the biggest losses have been from short-term positions. There have been big, long losses, but the magnitude of the loss compared to the wins was minimal. Here at Samso, we pride ourselves on delivering content for investors that is independent and informed by over three decades of experience in the industry. Our content is well researched and is only created if the team see a merit in discussing the company story. Investors can view our three main products in Coffee with Samso, Samso News and Samso Insights. There may be numerous paths to success in investing, but the common thread among successful individuals is that they remain committed to making informed decisions. Equip yourself with the right knowledge and tools, and you will be well on your way to achieving your financial goals. Most importantly, investors need to be absolutely diligent in understanding their own risk-reward tolerance and capabilities. Never bite off more than you can chew is my parting comment. As they say, Rome was not built in a day, and the Great Wall took is a great phenomenon because it took centuries to build. To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Cover photo: Brussels Stock Exchange (1), Bernard Lee. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Brussels_Stock_Exchange_(1).jpg). Reproduced photograph, shown faded under a navy overlay on the article thumbnail. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me at noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.

Dementia is one of those global health issues that quietly grows in the background until it becomes impossible to ignore. It does not carry the drama of a sudden outbreak or the headlines of a breakthrough cancer drug, but its impact is profound. It affects memory, judgement, independence and identity. It affects families as much as patients. It changes the economics of healthcare systems. Most importantly, it grows with age, which means ageing societies around the world are facing a challenge that is structural, not temporary. The World Health Organization estimates that more than 55 million people live with dementia globally, with nearly 10 million new cases every year. It is now one of the leading causes of disability and dependency among older people worldwide. Figure 1: Application of AI in the healthcare scene is now a norm with an influx of technologies and strategies to utilise the age of Scientific Intelligence. (source: Phillips) There is now enough coverage on AI working in the healthcare providing the very essence of productivity, chatbots, software automation and market hype. When we talk about AI, I don't feel that is still in one particular field of business. There is now no doubt in 2026 that Ai is in every conceivable business globally. The use of AI for the management of Dementia is not about replacing doctors or neurologists. It is being developed to help detect disease earlier, improve diagnostic accuracy, support carers and make healthcare systems more efficient. Personally, the use of AI may still be inefficient in the field of dementia as I don't think that the actual diagnosis of dementia is set in stone yet. There are theories out there but I am yet to be convinced. Lets see what the research tells us. Why Dementia Is So Difficult to Diagnose One of the realities often overlooked by the public is that dementia is not a single disease. It is a syndrome caused by multiple underlying conditions. The most common cause is Alzheimer’s disease, but vascular dementia, Lewy body dementia, frontotemporal dementia and mixed pathologies are also common. That complexity matters. Figure 2: Survival probability differed across primary etiologic diagnoses of dementia types. (source: [2]) Two people can present with similar memory problems yet have different underlying causes. One may respond to certain treatments, another may not. One may progress slowly, another rapidly. This is why diagnosis can take months, involve specialist referrals, imaging, cognitive testing, blood work and family history. Hence, it is very easy to understand that in many countries, there are simply not enough specialists to manage the growing demand. This creates a gap between what medicine knows and what healthcare systems can deliver. That gap is where AI is beginning to work. AI as a Diagnostic Assistant, Not a Replacement A landmark 2024 study published in Nature Medicine [1], developed an AI system trained on multimodal patient data to distinguish between multiple dementia causes. The system used combinations of medical history, cognitive testing, imaging and other available information. The significance was not just accuracy. The model was able to work with incomplete data sets, which reflects real-world medicine where every patient does not arrive with perfect records. Researchers also found that when neurologists used the AI system alongside their own judgement, diagnostic accuracy improved materially versus clinicians working alone. What this study may represent here is that the human touch is still critical as every person that shows some signs of dementia is different. Real world situations will show that the age and the severity of the symptoms will vary greatly. Another study in 2024 which was published in Communications Medicine [2], developed machine-learning models to predict dementia patient mortality. The results showed that it may be possible to predict whether a patient diagnosed with dementia will survive or die within 1, 3, 5, or 10 years. The study found that the prediction models can work well across patients from different parts of the US and across patients with different types of dementia. In the study [2], results showed that regardless of whether or not dementia patients suffered from cancer or heart conditions, global CDR (Global Clinical Dementia Rating) score remained significantly associated with mortality, suggesting that even among dementia patients with comorbidities (i.e., other causes of death such as cancer and cardiovascular disease), dementia-related causes are likely still the dominating factors of mortality (Figure 3) . Figure 3: To illustrate the relationship between dementia severity and survival, we performed a survival analysis based on global clinical dementia rating (CDR) scores (Fig. 1C). The overall median survival time in global CDR score at 0 was not reached, with 5- and 7-year survival rates of 93.7% and 90.1%, respectively. The overall median survival time in global CDR scores at 1, 2, and 3 was 141.8 months (95% CI 128.8–NA), 75.0 months (95% CI 69.0–81.0), 27.3 months (95% CI 25.3–29.3), respectively. With increasing global CDR score, which represents more severe cognitive impairment, patients generally showed worse outcomes. (source: [2]) Ultimately, the study [2] revealed that machine-learning models have utility in predicting dementia patient mortality at various survival-time thresholds. Parsimonious models (a statistical or machine learning model that achieves the best balance between predictive power and simplicity, using the fewest possible predictor variables to explain a phenomenon. It follows the principle of Occam's razor, favoring simple models over complex ones to avoid overfitting, improve interpretability, and ensure the model generalizes well to new data.) can be developed when limited clinical features are available, and dementia type-specific models can be used for distinguishing heterogeneous patient populations. If cross-validated and carefully implemented at the primary care level, such predictive models can improve personalized care of dementia. What this study highlighted was that the key predictive factor was a memory test, which is already used to diagnose and stage dementia. The ability of these models to identify dementia patients at a heightened risk of mortality could aid clinical practices, potentially allowing for earlier interventions and tailored treatment strategies to improve patient outcomes. Again, this is still telling us that the use of AI is assisting rather than replacing traditional healthcare practices. From personal experiences, dementia has yet shown why there is an increasing diagnosis rate recently. I feel the use of AI with its ability to churn through data and compare and contrast will help highlight any trends that could be used as a predictive tool in the future. The Value of Earlier Detection Dementia care has historically been reactive. Families notice symptoms late. Doctors assess when decline is visible. By then, progression may already be advanced. AI may help shift the timeline earlier. Researchers are now using machine learning models to analyse subtle patterns in: speech changes writing behaviour gait and movement retinal scans MRI patterns electronic health records cognitive test trends over time For example, recent research in Nature Portfolio showed AI systems using retinal imaging could identify early Alzheimer’s disease and mild cognitive impairment using non-invasive eye scans. The logic is simple: the retina can reflect vascular and neurological changes linked to the brain. This matters because cheaper, faster and scalable screening tools may allow earlier referral pathways. In practical terms, that could mean years of extra planning time for patients and families. Why This Matters Financially The dementia story is not only medical. It is economic. Late diagnosis often means crisis management: emergency admissions, carer burnout, accelerated residential care needs and higher hospital costs. Earlier diagnosis can support: medication management home modifications family planning risk reduction strategies structured care pathways clinical trial recruitment Governments know this. So do insurers and hospital systems. If AI can improve earlier recognition at scale, it becomes an economic tool as much as a clinical one. That usually attracts investment. AI in Daily Dementia Care Another area growing quietly is AI-enabled support tools for carers and aged care providers. This includes systems that can monitor behavioural change, identify wandering risk, detect falls, optimise medication reminders and personalise communication prompts. Generative AI may also help produce memory prompts, simplified conversations, multilingual support and caregiver training tools. These uses may not be glamorous, but they are commercially relevant because they solve labour shortages in aged care and improve quality of life. The Risks That Cannot Be Ignored Medical AI must deal with privacy, consent and bias forma sample that is not the same as the typical medical data sample sets. Dementia patients will be vulnerable, and many lose decision-making capacity over time. Any system collecting voice data, movement data or medical history must meet a higher ethical standard. There is also the issue of false positives. Telling someone they may be developing dementia when they are not can create psychological harm. Missing a real case can delay care. As the process is not about cure, one may say why is it important to diagnose it? In a world that is fast demanding evidence due to the speed of broadcasting news, responsible deployment will be extremely cautious and this may delay outcomes. Where Investors Should Look For investors, the AI-dementia theme is broader than a single stock pick. It can sit across several sectors: diagnostic imaging companies digital health software hospital workflow providers aged care technology platforms wearable sensor businesses pharmaceutical trial-enrolment platforms cloud healthcare infrastructure Some opportunities may not market themselves as dementia businesses at all. They may simply own enabling technologies that happen to solve dementia-related problems. That is usually where markets are slowest to price value. How Samso Sees the Story The market often chases AI stories linked to advertising, social media or speculative software multiples. Those sectors may generate headlines, but healthcare creates stickier value when products work. Have a look at Echo IQ Limited (ASX: EIQ). They are an AI company that is in the "medical" arena by providing a data-driven healthcare business building a scalable diagnostic platform anchored in real clinical need. The main business for Echo IQ is in the cardiovascular diagnostics space, using artificial intelligence to analyse echocardiograms and assist physicians in identifying complex conditions such as aortic stenosis and heart failure. Check out the Coffee with Samso with Echo IQ: What investors need to look out for is to recognise a story that has a tool that can save clinician time, improves diagnosis and lowers system cost, customers tend to keep paying. Dementia is also not cyclical. It is linked to demographics. Ageing populations in Australia, Japan, Europe, China and North America make this a long-duration structural theme. That means the demand side of the equation is unlikely to disappear. The harder question is which companies can turn useful science into scalable commercial products. That is where investors need discipline. Samso Concluding Thoughts Artificial intelligence will not cure dementia. It may never “solve” dementia in the simple sense many headlines suggest but it will definitely do something equally important. What AI is required to do is to help detect decline earlier and allow doctors to work faster and more accurately. What carers will want is to help them manage overwhelming workloads and governments will want to reduce cost pressures on healthcare systems already under strain. For investors, look out for a story that is not dramatic but show a clear incremental, useful and valuable commodity that will make a difference to the stakeholders in the unfortunate world of dementia. Finding a story that can solve someone's headache are the best investment stories of all. Sources & References Xue, C., Kowshik, S.S., Lteif, D. et al. AI-based differential diagnosis of dementia etiologies on multimodal data. Nat Med 30, 2977–2989 (2024). https://doi.org/10.1038/s41591-024-03118-z Zhang, J., Song, L., Miller, Z. et al. Machine learning models identify predictive features of patient mortality across dementia types. Commun Med 4, 23 (2024). https://doi.org/10.1038/s43856-024-00437-7 Cover photo: 23 0048618 Convair Negative Image - Brain scan (53837199668), San Diego Air & Space Museum Archives. Public domain, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:23_0048618_Convair_Negative_Image_-_Brain_scan_(53837199668).jpg). Reproduced photograph, shown faded under a navy overlay on the article thumbnail. The Samso Way – Seek the Research Here at Samso, we pride ourselves on delivering content for investors that is independent and informed by over three decades of experience in the industry. Our content is well-researched and is only created if I see merit in discussing the company's story. Our mission is simple: cut through the noise and spotlight what matters—genuine stories, grounded insights, and real opportunity. Our content is well-researched and is only created if the team sees merit in discussing the company or concept. Investors can explore our three core platforms: Coffee with Samso Samso Insights Samso News There may be numerous paths to success in investing, but the common thread among successful individuals is that they remain committed to making informed decisions. Equip yourself with the right knowledge and tools, and you will be well on your way to achieving your financial goals. Most importantly, investors need to be absolutely diligent in understanding their own risk-reward tolerance and capabilities. Never bite off more than you can chew. As they say, Rome wasn’t built in a day, and the Great Wall stood because it took centuries to complete. The Samso Philosophy: Stay curious. Stay sharp. And remember—digging deeper always uncovers the real value. In Life, there is no such thing as a Free Lunch. Never bite off more than you can chew is my parting comment. Happy Investing, and the only four-letter word you need to know is DYOR. To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer, or solicitation to subscribe for, purchase, or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try to write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation sees the benefit of what Samso is trying to achieve and has a need to share your journey, please contact me at noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.

Gold's allure in the investment landscape is not merely a consequence of its tangible value but stems from its intricate role in financial history and its enduring economic fundamentals. As a cornerstone asset, gold has transcended centuries, bolstering its stature as a versatile and strategic investment choice. Its ability to act as a hedge against inflation, a diversifier in portfolio management, and a beacon of stability in tumultuous markets highlights its multifaceted appeal. This timeless appeal is further solidified by gold's performance as a long-term investment, maintaining its purchasing power and offering competitive returns compared to other asset classes (Figure 1). Figure 1: Gold performance over the past 20 years (Source: World Gold Council) Gold’s multifaceted demand Gold's demand dynamics are as diverse as its uses, spanning from investment and jewellery to industrial applications and central bank reserves. This diversity in demand sources provides a stabilising effect on its price, as different sectors respond to economic variables in varied ways. Investment demand for gold, for instance, often increases in response to economic uncertainty or geopolitical tensions, as investors seek a safe haven for their capital. Conversely, the demand in jewellery and industrial sectors tends to rise with economic growth, as consumer confidence and industrial demand grow. The central bank's role in gold demand further exemplifies its strategic importance. Central banks hold gold as part of their foreign exchange reserves, providing a foundation of trust and stability in their financial systems. The accumulation of gold by central banks, especially in times of economic uncertainty, underscores their confidence in gold as a store of value and a tool for financial stability. Figure 2: Gold’s sources for demand Portfolio diversification The inclusion of gold in investment portfolios is not just about capital appreciation but also about risk management. Gold’s low correlation with other financial assets makes it an excellent tool for diversification, helping to reduce portfolio volatility and protect against market downturns. The ability of gold to perform well during periods of high inflation, currency devaluation, and economic recessions highlights its role as a financial safe haven. Liquidity and market dynamics Gold’s high liquidity is another compelling reason for its inclusion in investment portfolios. It can be easily bought and sold in global markets, providing investors with flexibility and access to cash when needed. The gold market's depth and breadth, with active trading in bullion, coins, futures, and exchange-traded funds (ETFs), ensure that gold can be liquidated efficiently, making it a reliable asset in both stable and volatile market conditions (Figure 3). Figure 3: Gold is liquid across key investment platforms The future of gold in the ESG landscape As the investment landscape evolves, gold's role continues to adapt as well. The integration of ESG criteria into investment decisions has brought new dimensions to gold’s appeal. Investors are increasingly considering the environmental and social impacts of their investments, and gold, when sourced responsibly, aligns with these sustainable investment objectives. The gold mining industry’s efforts to improve environmental and social governance practices are crucial in maintaining gold’s attractiveness to modern investors. Moreover, the potential of gold to mitigate climate-related risks adds to its strategic value in portfolios. As the global economy grapples with the transition to a low-carbon future, gold's stability and lack of direct emissions make it an attractive asset for investors looking to reduce their environmental footprint. Concluding Reflections The strategic allocation to gold in investment portfolios is a practice grounded in centuries of economic history, yet it remains relevant in today’s dynamic financial landscape. Gold's unique combination of historical significance, economic stability, and diverse market demand, coupled with its role in modern sustainable investment practices, cements its status as a foundational asset in investment portfolios. As financial markets continue to evolve, the timeless allure of gold, characterised by its resilience and adaptability, ensures its continued significance in achieving balanced and diversified investment strategies. Get Deeper Insights The latest and most reliable information from experienced sources, that are completely unbiased are now available through a Paid Membership. Sign up here for a more trustworthy source of well-researched and independent information for investors. ------- Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. ------ About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research. Coffee with Samso Experience

Sun Silver Rises on ASX Debut as Maverick Springs Shines Fresh from its IPO, which raised A$13 million, Sun Silver Ltd (ASX: SS1) is pushing forward with its Maverick Springs Silver-Gold Project in Nevada. The project boasts an inferred mineral resource of 292 million ounces of silver equivalent, positioning it as one of the largest silver resources on the ASX. Since listing, Sun Silver’s shares surged 175%, reflecting investor confidence. The company’s immediate focus includes resource development through infill and extensional drilling, aiming to upgrade the resource classification and expand the current resource. Nevada’s top-tier mining environment reinforces Sun Silver’s strategy, especially as global demand for silver, driven by industrial uses like solar energy, continues to grow. For investors keen on silver’s critical role in renewable energy, Sun Silver’s well-positioned assets offer an exciting opportunity. Sign up for your membership on Samso Insights on Patreon now to learn more. Three types of membership on Samso Insights Choose one or more: FREE: These insights are free and available to all investors. Subscribe here for free. PAID MEMBERSHIP: If you are a bold investor and want more, you get access to the latest and most reliable information from experienced sources that are completely unbiased starting from US$10/month. Start accessing our exclusive content to help with your investment research. PAID ARTICLES: Trustworthy source of well-researched and independent information for investors. Choose what interests you and unlock your choice of article from US$10. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

As part of the Samso evolution, welcome to our weekly review of the different sectors on the ASX. Samso will give a short highlight of what has come across our radar each week and share our thoughts so that investors can start some DYOR. The ASX Biotech Review is all about performance and innovation, with a clear demonstration of commercialisation in the biotech sector on the ASX. What's on offer in this ASX Biotech Review? When it comes to spotting undervalued potential in ASX stories, I often look for companies that are not only developing novel technologies but also demonstrating clear paths to commercialisation. The other category is what the opportunities are. This month, three small-cap names on the ASX have really caught my attention: Memphasys Limited (ASX: MEM), Control Bionics (ASX: CBL), and dorsaVi Ltd (ASX: DVL). Each is on a very different mission, but all three are making measurable progress, and their recent share price performance looks like investors are starting to notice. Memphasys Limited (ASX: MEM): Transforming Fertility and Animal Health So why did I choose Memphasys Limited (ASX: MEM) for this review? It's an interesting business, a biotechnology company specialising in fertility solutions for both human and animal applications. It has a market capitalisation of AUD9.91M (7th June 2025)and a fairly stable share price range for the last 2 years, with a high of just over AUD $0.02 and a low of AUD $0.005. The biotech sector is like the mineral exploration business: High Risk-High Reward. At the centre of it all is the Felix™ System, a sperm separation device designed to improve outcomes in human assisted reproductive technology (ART). The company hit a major milestone in March 2025 with the successful completion of its pivotal Phase III clinical trial. The data showed Felix achieved embryo utilisation rates statistically superior to Density Gradient Centrifugation (DGC), and non-inferior to the Swim-Up method — the gold standard in ART. This is a game-changer for IVF clinics globally. Why do I find this interesting? According to MEM, the global fertility market is substantial and growing. For instance, the equine artificial insemination market alone was valued at USD 681.1 million in 2023 and is projected to grow at a CAGR of 5.7% from 2024 to 2032. Memphasys's technologies, like the Felix™ System, have the potential to capture a share of this expanding market, especially as they continue to gain clinical validation and regulatory approvals. Let's face it, it's still touch and go, but let's say if this is successful, then an MC of under AUD $10M is going to be re-rated. Just as compelling is a growing network of partnerships: distribution agreements with Vitrolife (Japan, Canada, NZ), and ongoing discussions with Heranova in China and labs in Brazil. All of this feeds into their commercialisation pathway and regulatory submissions for CE Mark (Europe), TGA (Australia), and CDSCO (India). Strategic Partnerships and Collaborations (source: Memphasys Limited) Vitrolife Group: Memphasys has secured a five-year exclusive distribution agreement with Vitrolife Japan KK, a subsidiary of the global leader in IVF technologies. This partnership has successfully integrated the Felix™ system into several high-volume clinics in Japan's private health sector. Additionally, the agreement has been extended to include distribution rights in Canada and New Zealand, facilitating Memphasys's entry into these early access markets. Heranova Lifesciences: In December 2024, Memphasys signed a Letter of Intent with Heranova, a Hong Kong-based biotech company specializing in women's health. This collaboration aims to launch and distribute the Felix™ system in the Greater China region, leveraging Heranova's extensive experience in medical device distribution. Monash IVF Group: Memphasys has conducted pivotal clinical trials for the Felix™ system in collaboration with Monash IVF Group across nine active sites in Australia. The trials have confirmed the system's best-in-class performance in sperm selection for assisted reproductive technology (ART), paving the way for global commercial expansion. Then there’s RoXsta™ A complementary platform measuring oxidative stress. While initially tested in livestock fertility, it’s gaining serious traction for broader diagnostics. Their RoXsta Mega Cell High-Throughput Assay processes 96 samples in under an hour, which is a leap ahead of legacy systems that take up to 16 hours. This opens doors in both human and veterinary diagnostics. Dr David Ali - CEO & Managing Director: “We are thrilled that RoXsta™ can be so readily scaled, with the Mega Cell High-Throughput Assay device representing a further commercial opportunity for the Company. To date, much of the focus has been on smaller-scale assessments of RoXsta™, ensuring the results are accurate and the device is capable of being deployed in a commercial setting.” “The success of these pilot studies suggest Memphasys can move into the next development phase, identifying significant opportunities and optimising antioxidant testing for both commercial and research-led laboratories.” With a recent $1.275 million raise and an R&D rebate loan facility in hand, Memphasys is well-capitalised to keep the momentum going. Figure 1: Memphasys Limited (ASX: MEM) share price chart. 9source: commsec) Highlights in 2025 Clinically validated success of Felix™ as a best-in-class ART solution. Accelerated global commercial rollout in China, Brazil, and the UAE. RoXsta™ expansion into high-throughput diagnostics with veterinary and human applications. Strengthened funding base via $1.275M placement and R&D-backed loan. Growing strategic partnerships with Vitrolife and Heranova. Control Bionics (ASX: CBL): Assistive Tech Meets Global Expansion What makes Control Bionics stand out to me is their blend of real-world impact and commercial smarts. Their core IP is the NeuroNode® — a wearable EMG device that allows people with conditions like ALS or cerebral palsy to communicate and control devices using muscle signals. Already approved across the US, Australia, and Japan, NeuroNode is now entering a new growth phase. Recently, the company moved to a wholesale distribution model. In October 2024, a new US insurance code enabled standalone NeuroNode sales, opening up a whole new market of channel partners. They’ve already secured distribution agreements with SmartBox in the UK and are piloting new partnerships in the US and Europe. Even more interesting is how they are extending their tech into new verticals. Their DROVE module, for example, retrofits power wheelchairs for autonomous navigation. TGA approved and now heading for FDA submission, it adds a mobility dimension to their assistive communication dominance. And the NeuroStrip™? It’s their latest offering — a paper-thin, miniaturised EMG device already being trialled in sports science, rehabilitation, and health diagnostics. First revenue from NeuroStrip is expected in Q4 FY25, and their partner in Japan, StrokeLab, is leading a 100-patient study on Parkinson’s. CBL’s ability to translate IP into commercial applications is exactly what I like to see. Jeremy Steele – CEO: “We are delivering strong sales, cash collection and meaningful progress on our growth initiatives.” “We’ve found strong commercial appetite for our core IP, the NeuroNode, through our NeuroNode Only strategy. We’ve rolled out this technology now to multiple distributors (both in pilot and contract phases) in multiple geographies.” Figure 2: Control Bionics (ASX: CBL) share price chart since 2022. (source:commsec) Highlights in 2025 US reimbursement code enabled NeuroNode standalone sales. Strategic distribution wins in UK (SmartBox) and Japan. New revenue potential through NeuroStrip™ and autonomous wheelchair tech (DROVE). Highest US and Australian revenue in years alongside leaner operations. SaaS revenue emerging from NeuroStrip cloud software. dorsaVi Ltd (ASX: DVL): AI-Driven Injury Prevention in the Real World dorsaVi, for me, is the pick of the three companies. I like small-cap companies applying deep tech to real-life problems. dorsaVi is one of those. Their core tech — FDA-cleared wearable sensors and now an AI-powered video movement analysis platform — is finding strong uptake in elite sports, clinical rehab, and high-risk workplaces. Their latest product release, a first-in-class 3D motion analysis test, identifies ACL injury risk by capturing rotational torque forces that 1D force plates miss. For a physiotherapist or a sports team, that’s a leap forward in injury prevention. Over 80 clinics adopted their AI video platform within four months of launch. That’s impressive scalability. Dr Andrew Ronchi – CEO: “This technology represents a paradigm shift in sports injury prevention. Our AI-driven 3D motion analysis offers unprecedented accuracy in assessing knee mechanics in the clinic—something the industry has never had access to outside of biomechanics labs. We believe this innovation will become the new standard in ACL injury prevention and rehabilitation, delivering tangible benefits for athletes, teams, and clinicians worldwide.” And they’re making waves in the US: collaborating with top sports physician Dr. Chirag Patel (ESPN Resident Expert), working on injury mitigation with elite athletes across the NFL, NBA, and MLB. Plus, they’re securing security and tech clearances with a major US clinical franchise network — a move that could expand them across thousands of clinics. Most recently, they signed a three-year deal with SANO Health to deploy ViSafe+ Premium across remote mining sites. It’s a reminder that workplace safety remains a huge, and often overlooked, commercial opportunity. Figure 3: dorsaVi Ltd (ASX: DVL) share price chart since 2021.(source: commsec) Highlights in 2025 Launched 3D ACL injury test with AI-powered knee analysis. Rapid uptake of AI-powered video platform across >80 clinics. Strategic deal with ESPN’s injury expert, Dr. Chirag Patel. Expanded use of ViSafe+ through mining deal with SANO Health. Cleared path toward large-scale clinical rollout in the US. Samso Concluding Comments Each of these companies brings a different approach to biotech, but they all aim to deliver validated technology, targeting large addressable markets, and converting innovation into actionable business outcomes. Their progress across clinical, regulatory, and commercial fronts is why I am making the time to check them out. Do not forget that the biotech sector is a very volatile sector of the ASX, and it is as unforgiving as the mineral exploration stories. What appears to be a cat may not eventually turn out to be a cat. My point is as much as the facts tell the story, be aware that market sentiments are definitely in play, and the cash burn rate of these companies is just as bad as those in the mineral exploration game. Final Analysis Memphasys has bridged clinical validation with global partnerships. Control Bionics has transformed a life-changing assistive technology into a commercially viable growth engine. dorsaVi, meanwhile, is evolving from a niche wearable tech firm into a scalable AI-driven diagnostics and safety platform. That is what it boils down to, and I think each business has exponential growth; we just need to find the details and follow the ins and outs of the business they are promoting. Don't get me wrong, this is a sector I am now interested to learn and these three companies have their own unique value to me. dorsaVi is my pick of the 3 compnaies, especially with recent market excitement, and the business is in high-value markets that are always needing to fine-tune their products, and that is the athletes that make their business. Anything that is in the sports business is worth noting. At Samso, we focus on unearthing stories that matter — companies that are building quietly, solving real problems, and forging global pathways from local innovation. These three biotech stories are not about hype; they’re about traction. If you value diligence over noise and fundamentals over flash, these are the names to watch. Stay curious. Stay sharp. And remember — the smartest investments are often made before the headlines hit. Join us at www.samso.com.au to explore more ideas like these and be part of a community that believes in thinking deeper, investing better, and staying ahead of the curve. References Memphasys Limited. (2025). ASX Announcement – 14 April 2025 and 8 May 2025. Retrieved from https://www.memphasys.com Control Bionics Limited. (2025). Quarterly Activities and Cash Flow Report – 31 March 2025; Investor Presentation – May 2025. Retrieved from https://www.controlbionics.com dorsaVi Ltd. (2025). ASX Announcements – 3 Feb, 18 Mar, 30 Apr, 30 May 2025. Retrieved from https://www.dorsavi.com ASX. (2025). Share Price Charts for MEM, CBL, DVL. Retrieved from https://www2.asx.com.au To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Cover photo: Petri Dish with HEK293 (NIH BioArt 653), NIAID, Ryan Kissinger. Public domain, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Petri_Dish_with_HEK293_(NIH_BioArt_653).png). Reproduced photograph, shown faded under a navy overlay on the article thumbnail. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me at noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.

Updated 6 October 2026. This workup was first released in three parts on 24 September, 29 September and 1 October 2026, and it has been updated since that first release. The update takes in Brightstar's Mineral Resource statement of 28 September 2026, its Sandstone metallurgy results of 24 September 2026 and its drilling announcements to 5 October 2026. Share prices, the peer table and the gold price are now as at 5 October 2026. Brightstar is now labelled a near-term producer. Samso uses that label for a company with a published feasibility study and a stated date for first gold. Contents 5 The Mineral Resource and the Inferred Question 9 Building the Laverton Mill 6 Reading the Ore Reserve 10 The Balance Sheet, the Bond and the Revenue Gap 7 Sandstone 16 References and Sources 8 The 2026 Drilling, and How to Read the Headline Intercepts 17 Disclaimer 5 The Mineral Resource and the Inferred Question A Mineral Resource is a geological estimate of how much metal is in the ground, made by a Competent Person under the JORC Code. A Competent Person is a named, qualified geologist or engineer who signs the estimate off and is personally accountable for it. It is reported in three confidence categories, Measured, Indicated and Inferred, in that order of confidence. An Ore Reserve, which Section 6 defines in full, is the part of that resource a company has shown it can mine and sell at a profit. Three group resource numbers are in circulation and each is correct at its date. The 28 September 2026 announcement gives 5.17 million ounces and is the current one.[R38] The 15 July 2026 announcement gave 4.46 million ounces. The FY2026 Annual Report, released on 4 September 2026, states the group resource as at 30 June 2026 at 82.0 million tonnes at 1.5 grams of gold per tonne for 4.03 million contained ounces. The company's September 2026 presentation describes the group as "+5Moz".[R40] We use 5.17 million ounces and name its date.

This Samso Insight argues that the current market narrative around a major iron ore price decline, driven by the start-up of the Simandou Iron Ore Project in Guinea, may be overstated. While Simandou is a significant high-grade development, its forecast production needs to be considered against the scale of global iron ore supply and the long history of demand growth tied to steelmaking. The article places this discussion in historical context by tracing iron ore consumption through crude steel production since the 1960s, showing that the iron ore story has always been shaped by industrial growth, infrastructure build-out, and the ability of major producers to deliver reliable, scalable supply chains. The key conclusion is that iron ore should not be viewed simply as a commodity facing oversupply, but as a sector entering a new stage of differentiation. The article highlights that the future of iron ore will increasingly depend on product quality, logistics, and suitability for cleaner steelmaking pathways. In that sense, the real investment shift may not be about whether Simandou adds more tonnes to the market, but whether producers can supply the higher-grade feedstocks needed for Direct Reduction Iron and lower-emission steel production. The concluding view is that the iron ore market is in transition rather than decline. Global steel output remains near historically high levels, demand may shift geographically rather than disappear, and the rise of decarbonisation is creating a new premium segment for magnetite projects capable of producing Direct Reduction-grade concentrate and pellets. In supporting the narrative of a transition to cleaner DIR pellets, China is now deploying commercial DRI facilities. For investors, this means the more important story may not be short-term fear around Simandou, but identifying which companies and ore bodies are best positioned for the next phase of the iron ore business. To help readers navigate through the Samso Insight, a content list is provided below. Content 1.0 Introduction – Are Iron Ore Investments A Sunset Industry or Are We Being Fed The Red Herring. 2.0 Global Consumption of Iron Ore 3.0 Decade-by-Decade: What Drove the Iron Ore Appetite? 1960s — The export era switches on 1970s — Growth continues, then energy shocks bite 1980s — Mature economies plateau; Brazil’s next chapter ramps 1990s — A long pause before the surge 2000s — The super-cycle: steel becomes a global volume game 2010s — China dominates; the system industrialises further 2020s — Plateau signals + regional shift 4.0 Timeline: Consumption Milestones + When Major Producers Stepped Into The Iron Ore Game. 5.0 The “Major Producer Involvement” Point That Often Gets Missed 6.0 The Top 10 Global Iron Ore Projects 6.01 Rio Tinto – Pilbara iron ore system (Australia) 6.02 BHP – Western Australia Iron Ore (WAIO) 6.03 Vale – Carajás Northern System (Brazil, incl. S11D) 6.04 Fortescue – Pilbara iron ore operations (Australia) 6.05 Simandou iron ore project (Guinea) (projected) 6.06 Roy Hill (Australia) 6.07 NMDC – Bailadila iron ore complex (India) 6.08 Kumba Iron Ore – Sishen & Kolomela (South Africa) Sishen Mine – Northern Cape Kolomela Mine – Northern Cape Production & Strategic Importance Geological Context 6.09 LKAB – Kiruna & Malmberget (Sweden) 6.10 IOC – Iron Ore Company of Canada (Canada) 7.0 The New Generation of the Iron Ore Business -Direct Reduction Pellets — The Race Toward Green Steel Starts at the Ore Body China Making DRI Happen 7.01 What Are Direct Reduction (DR) Pellets? 7.01.1 Key Characteristics of DR Pellets: 7.02 How Are DR Pellets Produced? 7.02.1 Step-by-Step Process: 7.03 Why DR Pellets Matter 7.03.01 Decarbonisation of Steel 7.03.02 EAF Growth 7.03.03 Premium Pricing 7.04 Not All Magnetite Deposits Can Produce DR Pellets 7.04.01 Why? 7.04.02 Ore body geology determines pellet quality. 7.04.03 Why This Sector Is Emerging 8.0 Global Companies Working on DR Pellets 8.01 Vale S.A. - Brazil 8.02 LKAB - Sweden 8.03 ArcelorMittal (AMMC Canada) - Canada 8.04 Cleveland-Cliffs Inc. - US 8.05 Fortescue Limited - Australia 9.0 Small Iron Ore Companies Targeting the Direct Reduction Pellet Market 9.01 Tacora Resources – Magnetite DR Pellet Producer 9.02 Grange Resources – Magnetite Concentrate for DR Pellets 9.03 Kamistiatusset (Kami) Iron Ore Project – DR Pellet Feed Concept 9.04 Magnetite Mines – DR Pellet Feed From Razorback 9.05 Champion Iron – Premium DR Pellet Feed Supplier 9.06 Iron Bear Limited – Iron Bear Iron Ore Mine - Direct Reduction Strategy 10.0 Strategic Observations — The Samso View 11.0 Final Thoughts 12.0 Samso Concluding Comments 1.0 Introduction – Are Iron Ore Investments A Sunset Industry or Are We Being Fed The Red Herring. Investors in the iron ore sector are currently being told to brace for a softening in global iron ore pricing as the giant Simandou Iron Ore mine ships its first shipment of high grade ore. The street talk is that the imminent 120 million tonnes per annum production coming out of Guinea is going to drive iron ore pricing to the sub USD $80 to $90 per tonne. Iron Ore Rocks and Mining Operations in Australia Market analysts have largely accepted this situation, as the dominant conversation centers on the influx or "glut" of ore "flooding" the market. To me, this is reminiscent of past experts who predicted the decline of oil and gas, the continuous rise of lithium and cobalt, and the fall of gold in 1999 when its price dropped from USD $428 to below USD $240. I recall experts at that time claiming that gold would just become another commodity. Figure 1: Historical Gold Price Chart. (source: Macrotrends.net) For those readers who remember that moment in 1999, you would have thought that there must be some truth in those headlines, but as you can see in Figure 1, that was a mere bump in the road to the current gold price in February 2026. Check this site out, it has a good summary of the gold price movement for the last several decades: Best Brokers I remember in 2018, gold price was about to fall below USD $1000 and there was also a series of conversations of the oncoming dark clouds of a depressing gold price. Again, that was just another bump in the road. So is this current discussion with the iron ore price another bump in the road? Are we going to see a new era of a lesser iron ore pricing? 2.0 Global Consumption of Iron Ore Iron Ore Consumption Since the 1960s — and When the Giants Stepped In When discussing "iron ore demand," people typically refer to steel demand. Iron ore is the essential feedstock for primary steelmaking, and nearly all iron ore (around 98%) is used for steel production. For a clear and consistent timeline from the 1960s onward, the most dependable long-term indicator is world crude steel production, which serves as a strong proxy for iron ore consumption trends. What follows is a Samso-style overview of the past ~65 years: how the world's appetite expanded, why it evolved over time, and how the major producers (along with the modern export system) developed capacity to meet this demand. I discovered an excellent chart by Own Analytics (Figure 2) that I believe will complement the details described below. Owen Analytics has illustrated the volatility of iron ore pricing over the decades and how various events have influenced pricing. Figure 2: The Owen Analytics chart showing the share prices of the big three iron ore miners/exporters – BHP, RIO and Fortescue (FMG) and that of iron ore. Their share prices have been scaled in order to show them on the one chart. (source: Owen Analytics) In this Samso Insight, the key events influencing iron ore prices highlight why investors should carefully consider the current state of the iron ore market. While the common belief suggests a slowdown in pricing, I believe there are strong reasons to think the impact of Simandou might be exaggerated. Let's explore the Samso Insight to determine if the global trend of selling in anticipation of lower iron ore prices is actually a strategic move by the market to encourage others to sell while they themselves are buying for long-term positions. Consider this: in 2024-2025, the average global annual production of iron ore was approximately 2,490 MT, and in the future, Simandou is expected to reach a peak of about 120 MT annually. If they were to boost their production to 120 MT per year today, it would only represent about 4-5% of global production (a rough estimate). Figure 3: China Steel Output vs. Steel product exports. (source: Reuters) The speed at which Simandou reaches its maximum production is a significant factor. Although reaching the target of 120 MT per annum is an objective, any delays or operational disruptions that hinder achieving this level will lend more credibility to my views on Simandou's impact on global iron ore production. Assuming that consumption will increase over time and that the Chinese economy (Figure 3) will eventually resume its growth towards a forward-moving GDP, any new production will most likely simply be absorbed. Narratives forget that the whole world is still progressing and the consumption is always going to be increasing and deleption of ore is also always going to be increasing. For me, this is a very simplistic explanation of why I believe that the output from Simandou will naturally be consumed and not be a real significant hurdle for the iron ore price. Depletion from existing mines, which is a strong candidate for a decrease in future supply, will definitely contribute negatively to the global production versus consumption balance. My thoughts: the price of iron ore is unlikely to be depressed; if anything, it will remain at a sustainable level, with some volatility, and has a good chance of rising in the medium term, likely after the Chinese New Year period. Before we convince each other, let's look through some market facts that the internet cans provide for us. The Consumption Story (1960s → Today), Told Through Steel World crude steel production (million tonnes): Figure 4 Figure 4: Work Steel production since 1960. 1960: 347 MT -1970: 595 MT - 1980: 717 MT - 1990: 770 MT - 2000: 850 MT - 2005: 1,148 MT - 2010: 1,435 MT - 2015: 1,626 MT - 2020: 1,883 MT - 2024: 1,885 MT. The tonnage are an approximation from a search on google. Looking at Figure 2, you can see the narrative illustratively but it's a good addition to the visualisation if you consider the details listed below: 1960–1970: rapid industrial build-out (post-war rebuild + manufacturing expansion). 1970–1990: slows and flattens (oil shocks, recessions, and mature-economy saturation). 2000–2020: the modern super-cycle (China-led urbanisation and infrastructure build). 2020–2024: high plateau (still huge volumes, but no longer the same growth engine). 3.0 Decade-by-Decade: What Drove the Iron Ore Appetite? Figure 4 is a good chart to follow as you go through this section. 3.01 1960s — The export era switches on This decade is the “start gun” for the modern seaborne iron ore trade, especially for Australia. In 1960, Australia partially lifted an iron ore export ban that had been in place since 1938—one of those policy pivots that looks obvious in hindsight. On the consumption side, global crude steel output moved from 347 Mt (1960) to 456 Mt (1965), reflecting accelerating industrial demand. 3.02 1970s — Growth continues, then energy shocks bite Steel production rises to 595 Mt (1970) and 644 Mt (1975), but the growth rate slows as oil shocks and inflation reshape heavy industry economics. This is also when Japan’s role as a premium buyer of seaborne ore becomes structurally important (long-term contracting culture, reliability, and quality discipline), shaping how producers think about scale and consistency. 3.03 1980s — Mature economies plateau; Brazil’s next chapter ramps World crude steel is basically flat: 717 Mt (1980) and 719 Mt (1985). But the supply system keeps professionalising and expanding. A major marker here is Vale’s Carajás region, where Vale notes it has been mining iron ore in the area since 1985 (a key turning point in Brazil’s scale and grade advantage). 3.04 1990s — A long pause before the surge World crude steel is 770 Mt (1990) then 753 Mt (1995)—a decade where demand growth is real but not explosive. This is the era where efficiency, blending, and supply-chain reliability become increasingly valuable. The “big mining” model (large hubs, integrated rail/port, tight product specs) proves it can outcompete a fragmented supply base. 3.05 2000s — The super-cycle: steel becomes a global volume game Steel production jumps from 850 Mt (2000) to 1,148 Mt (2005). This is the decade that rewired iron ore thinking: volume security becomes strategic; pricing mechanisms evolve (from annual benchmark norms toward more market-linked approaches); and miners invest like the market will be big forever. 3.06 2010s — China dominates; the system industrialises further Steel hits 1,435 Mt (2010) and rises through the decade to the 1.8+ Bt level. By now, the iron ore market is less about “finding customers” and more about: keeping trains and ports running, matching product to mill blends, and managing grade/sinter/pellet strategies. 3.07 2020s — Plateau signals + regional shift World crude steel is basically at a high plateau: 1,883 Mt (2020) and 1,885 Mt (2024). Recent reporting also points to a key transition theme: China appears to have passed peak steel, while developing Asia continues to grow, which can change where iron ore demand growth comes from—even if global volumes remain enormous. 4.0 Timeline: Consumption Milestones + When Major Producers Stepped Into The Iron Ore Game. Table 1: Here’s a combined timeline (demand proxy + producer milestones) to make it easy to reference. Period Demand proxy (world crude steel) Producer “involvement” milestones (how the giants entered / scaled) 1960 347 Mt Australia partially lifts iron ore export ban (policy unlock) 1966 (mid-60s growth) Rio Tinto notes its first Pilbara shipment from Mount Tom Price in 1966 1969 (approaching 1970 peak) BHP marks 1969 as first railing + first shipment from the Mt Newman Project (Mt Whaleback / Port Hedland) 1970 595 Mt Pilbara system proves repeatable at scale (rail + port + long-term Asian contracting) 1980–1985 717–719 Mt Vale’s Carajás mining era begins (Vale references mining since 1985) 1990–1995 770 → 753 Mt Majors consolidate “hub” thinking: product quality, blending, port optionality, and reliability become competitive moats 2000–2005 850 → 1,148 Mt China-driven demand shock forces multi-year capital programs across Australia & Brazil 2010 1,435 Mt Market becomes structurally seaborne-volume dominated; miners optimise for throughput + consistency 2024 1,885 Mt New narrative: China output appears past peak; growth shifts toward developing Asia 5.0 The “Major Producer Involvement” Point That Often Gets Missed A useful way to frame producer involvement isn’t just “who existed,” but who built export systems that could scale: Australia (Pilbara) became the blueprint for integrated iron ore exports: mine → rail → port → Asia, enabled by the 1960 export policy shift and then executed through the first shipments in the mid-to-late 1960s. Brazil (Carajás) reinforced the other pillar of global supply: very large scale with quality advantages, with Vale referencing operations in Carajás since 1985. Over time, the market migrated from a “many suppliers” feel to a system where a small number of huge, operationally disciplined exporters set the reliability standard. 6.0 The Top 10 Global Iron Ore Projects 6.01 Rio Tinto – Pilbara iron ore system (Australia) Tonnes mined per year: ~330–340 Mtpa (operating capacity) Typical product grade: ~61–62% Fe Mine life remaining: 20+ years (continuously extended via replacement hubs) One of the aspects of the Rio Tinto operations in the Pilbara is the longevity of their operations. For example, the Paraburdoo region is one of the longest running iron ore operations in their Western Australian operations having started production in 1972 (Figure 5). Figure 5: A large haulpak working in Rio Tinto's operations in the Paraburdoo region in Western Australia. (source: RioTinto) The most recognisable iron ore operations in the Pilbara that Rio Tinto operates is the Mount Tom Price operations (Figure 6). The Mount Tom Price mine is located in the Pilbara region of Western Australia, near the town of Tom Price. The mine is fully owned and operated by Rio Tinto Iron Ore and is one of twelve iron ore mines the company operates in the Pilbara. In 2009, the combined Pilbara operations produced 202 million tonnes of iron ore, a 15 percent increase from 2008. Figure 6: The Mount Tom Price operations. (source: Wikipedia - By Bäras - Own work, CC BY-SA 3.0) The Pilbara operations accounted for almost 13 percent of the world's 2009 iron ore production of 1.59 billion tonnes. Figure 7 below shows the Rio Tinto operations as of 2023. Figure 7: Pilbara miners produced over 800 billion tonnes of iron ore in the 2020-21 financial year, with Western Australia accounting for 98% of the country’s total iron ore reserves. These products included over $100bn (A$150bn) worth of iron ore exports, and generated $103.3bn (A$154bn) in sales, up from $42.7bn (A$64bn) in 2016-17. (source: Mine Australia - Credit: Peter Christener via Wikimedia) The Hamersley Range, where the mine is located, contains 80 percent of all identified iron ore reserves in Australia and is one of the world's major iron ore provinces. (source: Wikipedia) 6.02 BHP – Western Australia Iron Ore (WAIO) Tonnes mined per year: ~330 Mtpa (operating system capacity) Typical product grade: ~61–62% Fe Mine life remaining: 20–30+ years (portfolio of mines) The BHP operations are just as extensive in the Pilbara and a type example of the iron ore operations is that of the Mount Whaleback mine, officially the Newman West operation and is located in the Pilbara region of Western Australia, six kilometres west of Newman. The mine is majority-owned (85 per cent) and is one of five iron ore mines the company operates in the Pilbara. Figure 8: The Mount Whaleback iron ore mine. The Mount Whaleback deposit was discovered in 1957 by Stan Hilditch but not publicised until 1960, when the Australian Government lifted the embargo on iron ore exports it had put in place because of concerns the mineral was in short supply. (source: Wikipedia - By Graeme Churchard from Bristol (51.4414, -2.5242), UK - Uploaded by PDTillman, CC BY 2.0 ) The story of iron ore mining around Newman begins in 1968, when BHP opened the Mount Whaleback Mine in the heart of the Pilbara. At the time, this was a defining moment for Australia’s iron ore industry. Mount Whaleback would become the largest single open-pit iron ore mine in the world. The mine itself is immense (Figure 8). The pit is around 1.5 kilometres wide and stretches more than five kilometres in length. Over time, the operation has continued to deepen, with the final design expected to reach roughly half a kilometre below surface. The scale of the deposit and the mining operation helped establish Newman as one of the key centres of iron ore production in the Pilbara (Figure 9). Figure 9: The location of the town of Newman to the Mt Whaleback mine - 2020. (source: Wikipedia - By NASA Earth Observatory image by Lauren Dauphin) Developing Mount Whaleback required more than just building a mine. A new township was established to support the workforce, and the town of Newman grew alongside the project. To move the ore to the coast, BHP constructed the 426-kilometre Mount Newman Railway linking the mine to port facilities on the Pilbara coast (Figure 7). Operations moved quickly once the infrastructure was in place. The first train carrying iron ore left Newman on 1 January 1969, marking the beginning of large-scale shipments from the Pilbara. Only a few months later, on 1 April 1969, the first cargo of Newman ore was loaded onto the vessel Osumi Maru for export. In those early years, Newman was operated as a closed company town, a common model for remote mining developments at the time. This arrangement remained in place until 1981, when the town opened up and evolved into the regional mining centre it is today. For anyone looking at the development of the Pilbara iron ore industry, the opening of Mount Whaleback and the creation of Newman marked the beginning of what would become one of the most significant iron ore production regions in the world. 6.03 Vale – Carajás Northern System (Brazil, incl. S11D) Tonnes mined per year: ~230 Mtpa (operating + ramp-up capacity) Typical product grade: ~65–67% Fe Mine life remaining: ~25–40 years The Carajás Northern System is the largest and most important iron ore production hub operated by Vale in northern Brazil. The operations are located in the Carajás Mineral Province in the state of Pará, one of the richest iron ore regions in the world. Figure 10: The Serra Norte iron ore mining area is part of Vale’s Northern System, and is located in the municipality of Parauapebas, which is in the state of Pará, in northern Brazil. The N4W, N4E and N5 mines are currently operating, generally referred to as the Carajas mining complex. The Carajás system contains some of the highest-grade iron ore deposits globally, typically averaging around 65% Fe, which allows Vale to produce premium lump and fines products with relatively low levels of impurities such as silica and alumina. These characteristics make Carajás ore particularly suitable for efficient steelmaking and lower emissions in blast furnace operations. Mining at Carajás began in the mid-1980s, and the region has since developed into a large integrated mining system consisting of multiple open-pit mines, beneficiation plants, rail infrastructure, and export terminals. The Northern System is the largest of Vale’s three main Brazilian iron ore systems and contributes the majority of the company’s total production. The S11D Operations. A major expansion of the Carajás operations came with the development of the S11D Eliezer Batista Complex, which began production in 2016. The S11D project is one of the largest iron ore developments ever built and significantly increased Vale’s capacity in the region. Figure 11: A conveyor belt transports iron ore at the Vale S11D mine in Parauapebas, Para state, Brazil. (source: Bloomberg - Photographer: Dado Galdieri/Bloomberg) The project is notable for its “truckless” mining system, where ore is transported from the pit to the processing plant using conveyor belts rather than traditional haul trucks. This approach reduces fuel consumption, operating costs, and environmental impacts. S11D has a designed production capacity of around 90 million tonnes of iron ore per year, making it one of the largest individual iron ore mining projects in the world. The ore from S11D is also exceptionally high grade, typically above 65% Fe, reinforcing the premium product profile of the Carajás system. Key Facts – Vale Carajás Northern System Location: Carajás Mineral Province, Pará State, Brazil Operator: Vale S.A. Main deposits: Carajás mines including the S11D complex Ore grade: typically around 65% Fe S11D capacity: ~90 million tonnes per year Transport: Estrada de Ferro Carajás railway (~890 km) Export port: Ponta da Madeira terminal (São Luís) One of the largest and highest-grade iron ore mining systems in the world 6.04 Fortescue – Pilbara iron ore operations (Australia) Tonnes mined per year: ~200–220 Mtpa (operating capacity) Typical product grade: ~56–59% Fe (improving with higher-grade replacement ore) Mine life remaining: 20+ years The iron ore operations of Fortescue are located in the Pilbara and form one of the largest iron ore production systems in the world. Since the company’s first shipment in 2008, Fortescue has grown from a new entrant in the Pilbara into the third major iron ore producer in the region, alongside Rio Tinto and BHP. Figure 12: A schematic diagram highlighting the iron ore hub for Fortescue Resources. (source: Livewiremarkets) Fortescue’s operations are centred on large open-pit iron ore mines that produce hematite ore from the Hamersley Basin, one of the world’s most significant iron ore provinces. The company operates multiple mining hubs that supply ore to processing plants, rail infrastructure, and export terminals on the Pilbara coast. Today, Fortescue’s Pilbara system has a production capacity of around 190 million tonnes of iron ore per year, supplying global steel markets, particularly in Asia. Major Mining Hubs Fortescue’s iron ore production is organised into several major mining hubs across the Pilbara. Chichester Hub Located near Cloudbreak (Figure 13) and Christmas Creek (Figure 14), the Chichester Hub was the company’s first major mining operation. These deposits produce a blend of ore types that are processed and transported to port via Fortescue’s rail network. Figure 13: The Christmas Creek iron ore operations. (source: Fortescue) Figure 14: The Cloudbreak iron ore operations. (source: Fortescue) Solomon Hub The Solomon Hub (Figure 15) includes the Firetail and Kings Valley iron ore deposits. This hub produces higher-grade ore compared with some of Fortescue’s earlier operations and contributes a large share of the company’s production. Figure 15: The Solomon iron ore operations. (source: Fortescue) Western Hub – Eliwana and Iron Bridge Fortescue expanded further west with the development of the Eliwana iron ore Mine (Figure 16), which began production in 2020. Eliwana provides higher-grade ore and supports Fortescue’s strategy to improve product quality iron ore. Figure 16: The Eliwana iron ore mine. (source: Fortescue) Another major development is the Iron Bridge Magnetite Project. Unlike Fortescue’s traditional hematite operations, Iron Bridge iron ore mine produces a high-grade magnetite concentrate and represents the company’s move into magnetite iron ore production. Figure 17: The Ironbridge magnetite project accomodation camp. (source: Fortescue) Key Facts – Fortescue Iron Ore Operations Operator: Fortescue Location: Pilbara region, Western Australia First production: 2008 Main mining hubs: Chichester Hub (Cloudbreak, Christmas Creek) Solomon Hub (Firetail, Kings Valley) Western Hub (Eliwana) Magnetite development: Iron Bridge project Rail network: ~600 km heavy-haul railway Export terminal: Herb Elliott Port, Port Hedland Production capacity: ~190 million tonnes per year 6.05 Simandou Iron Ore Project (Guinea) (projected) Tonnes mined per year: ~60 Mtpa (Phase 1 sanctioned) Long-term expansion discussions: up to ~120 Mtpa Typical product grade: ~65–66% Fe (very high-grade hematite) Mine life remaining: 30–40+ years Status: Under development (rail + port critical path) The Simandou Iron Ore Project (Figure 18) in the Republic of Guinea is widely regarded as one of the largest undeveloped high-grade iron ore deposits in the world. Located in the Simandou mountain range in southeastern Guinea, the project contains exceptionally high-grade hematite resources and has the potential to become one of the most significant new sources of seaborne iron ore supply. Figure 18: The Simandou Iron Ore Project. (source: South China Morning Post) The deposit is divided into four main blocks along the Simandou range. Development of the project is being undertaken by a consortium that includes Rio Tinto, the Aluminium Corporation of China (Chinalco) and a group of Chinese investors under the Simandou Winning Consortium. The government of Guinea also holds a stake in the project. Simandou has been known for decades as a world-class iron ore province, but development has been delayed due to infrastructure requirements, financing complexity and ownership changes. In recent years, construction has accelerated as the partners move toward bringing the project into production. Simandou is notable for its high-grade hematite ore, typically grading around 65–66% iron, which is comparable to the premium ores produced from Brazil’s Carajás deposits. The scale of the deposit is also exceptional, with resources estimated to exceed two billion tonnes of high-grade iron ore across the Simandou range. Figure 19: Mining begins at the Simandou Iron Ore Project. (source: Reuters) The ore occurs along a ridge system stretching more than 100 kilometres, making it one of the most extensive undeveloped iron ore formations globally. These characteristics mean Simandou could produce a premium iron ore product suitable for efficient steelmaking. The mine officiaily commenced in early November 2025. Production rates are expected to reach full capacity of 120mtpa by 2030, 60mtpa of which will come from SimFer, a consortium 53% owned by Rio. When the project reaches full capacity, it will account for about 5% of total global supply. As the Simandou operations approach full capacity, S&P Global estimates all-in sustaining costs in the range of $55-$60/t. Key Facts – Simandou Iron Ore Project Location: Simandou Range, southeastern Guinea Deposit type: High-grade hematite iron ore Resource scale: >2 billion tonnes Average grade: ~65–66% Fe Planned production: ~100 Mt per year (long-term) Infrastructure: ~650 km Trans-Guinean railway New deep-water export port Major stakeholders: Rio Tinto Chinalco Simandou Winning Consortium Government of Guinea 6.06 Roy Hill (Australia) Tonnes mined per year: ~60 Mtpa (operating nameplate) Typical product grade: ~55–62% Fe (lump + fines blend) Mine life remaining: >20 years The Roy Hill Mine is a large open-pit iron ore operation located in the eastern part of the Pilbara. The mine is operated by Roy Hill Holdings and represents one of the largest single iron ore mining developments constructed in Australia during the past two decades. Figure 20: The Roy HIll Iron Ore Operations. (source: MLG) The project is situated about 115 kilometres north of the mining town of Newman and was developed to exploit a large hematite iron ore deposit within the Brockman iron formation of the Hamersley Basin. Construction of the mine and associated infrastructure began in 2013, with the first shipment of iron ore exported in December 2015. The development required significant investment in mining infrastructure, processing facilities, rail transport and port infrastructure. Mining and Processing Operations Roy Hill is designed as a large-scale open-pit mining operation producing hematite iron ore. Ore extracted from the mine is transported to a central processing plant where it is crushed, screened and beneficiated to produce lump and fines iron ore products suitable for steelmaking. The operation has a nameplate production capacity of approximately 60 million tonnes of iron ore per year, placing it among the major iron ore producers in the Pilbara. Mining operations utilise large-scale haul trucks, excavators and drill rigs typical of modern Pilbara iron ore operations. The project was designed to operate as an integrated mining system with its own processing and logistics infrastructure. Ownership Roy Hill Holdings is privately owned and led by Australian businesswoman Gina Rinehart through the Hancock Prospecting group. The project also includes several international partners. Major stakeholders include: Hancock Prospecting Marubeni Corporation POSCO China Steel Corporation These partnerships helped finance the large-scale development of the project and support long-term iron ore supply agreements with steel producers. Key Facts – Roy Hill Iron Ore Mine Location: Pilbara region, Western Australia Distance from Newman: ~115 km north Mining method: Open-pit hematite mining Production capacity: ~60 Mt per year Railway: ~344 km Roy Hill Railway Export port: Roy Hill terminal, Port Hedland First shipment: December 2015 6.07 NMDC – Bailadila iron ore complex (India) Tonnes mined per year: ~45 Mtpa (operating / targeted) Typical product grade: ~64–66% Fe Mine life remaining: 20+ years (multiple mining leases) The Bailadila Iron Ore Complex is one of India’s most important iron ore mining regions and is operated by the state-owned company NMDC Limited. The complex is located in the Bastar district of Chhattisgarh, within a series of mountain ridges known as the Bailadila range (Figure 21). Figure 21: The Bailadila Iron Ore Mine. (source: NMDC) The name “Bailadila” translates roughly to “hump of the ox”, reflecting the shape of the hills where the iron ore deposits occur. These deposits are among the highest-grade iron ore resources in India, typically producing hematite ore with iron content exceeding 64% Fe. Mining in the Bailadila region began in the late 1960s and has since developed into a major production centre supplying iron ore to both domestic steel producers and international markets. The Bailadila complex consists of a number of iron ore deposits distributed along the Bailadila hill range. Several deposits are actively mined by NMDC, including: Deposit 14/11C Deposit 11B Deposit 5 Deposit 10 and 11A Mining is conducted using large open-pit methods, where ore is extracted from the hillside deposits and transported to nearby crushing and screening plants. The ore is then processed to produce lump and fines products suitable for steelmaking. The deposits are known for their high-grade hematite ore, which allows NMDC to supply premium iron ore products to steel mills. Key Facts – Bailadila Iron Ore Complex Location: Bastar region, Chhattisgarh, India Operator: NMDC Limited Deposit type: High-grade hematite iron ore Ore grade: typically 64%+ Fe Mining method: Open-pit mining Major deposits: 14/11C, 11B, 5, 10 and 11A Rail connection: Kirandul–Visakhapatnam line Export port: Visakhapatnam Port 6.08 Kumba Iron Ore – Sishen & Kolomela (South Africa) Kumba Iron Ore (Figure 22) is one of the largest iron ore producers in Africa and a major supplier of high-quality iron ore to the global steel industry. The company operates large open-pit iron ore mines in the Northern Cape Province of South Africa and is majority owned by Anglo American. Kumba’s operations are centred on the Sishen and Kolomela mines, which extract hematite iron ore from deposits within the Transvaal Supergroup of the Kaapvaal Craton. These deposits are known for producing high-grade lump and fines iron ore products, which are exported primarily to steel producers in Asia and Europe. The company plays an important role in South Africa’s mining sector, contributing significantly to the country’s iron ore exports and providing supply to both domestic and international steel markets. Sishen Mine – Northern Cape Location: Near Kathu, Northern Cape, South Africa Ownership: Operated by Kumba Iron Ore (majority owned by Anglo American) Product: High-grade hematite iron ore lump and fines Figure 22: Kumba Iron Ore Mining operations. (source: Mining Weekly) Sishen is one of the largest open-pit iron ore mines in the world and the flagship asset of Kumba Iron Ore. The orebody is predominantly high-grade hematite hosted within the Transvaal Supergroup. Mining is conducted via large-scale conventional open-pit methods using truck-and-shovel fleets. Sishen produces both lump (direct shipping ore suitable for blast furnaces) and fines products. The mine is a key supplier to global steelmakers and exports via the Sishen–Saldanha heavy-haul railway to the port of Port of Saldanha. Kolomela Mine – Northern Cape Location: Near Postmasburg, Northern Cape, South Africa Ownership: Operated by Kumba Iron Ore Product: High-grade hematite iron ore Kolomela is a newer, smaller but highly efficient open-pit iron ore operation compared to Sishen. It was developed to replace declining production from older pits and to maintain Kumba’s export capacity. Kolomela is known for: Relatively lower stripping ratios Operational efficiency Consistent high-grade product Production & Strategic Importance Combined production historically ~35–40+ million tonnes per annum (varies by year and market conditions). Typical product grade: ~64% Fe Mine life remaining: Sishen: ~10–15 years Kolomela: ~15–20 years Primary markets: China, Europe, and the Middle East. Strategic importance: Key supplier of premium iron ore products that support efficient blast furnace operations and lower emissions intensity per tonne of steel. Geological Context Both Sishen and Kolomela exploit Banded Iron Formation (BIF)-hosted hematite deposits, enriched through supergene processes that upgraded the original iron formation to high-grade direct shipping iron ore. This natural upgrading is a major reason why these mines are globally competitive. 6.09 LKAB – Kiruna & Malmberget (Sweden) The Kiruna Iron Ore Mine (Figure 23), located in Kiruna, Norrbotten County in northern Sweden, is owned by Swedish mining company LKAB (Luossavaara-Kiirunavaara AB). It is one of the largest and most significant underground iron ore operations in the world. In 2018, the mine produced 26.9 million tonnes of iron ore. The orebody is approximately 4 km long, 80–120 metres thick, and extends to a depth of up to 2 km. Since operations began in 1898, more than 950 million tonnes of ore have been extracted. As of 2020, the main haulage level sits 1,365 metres below the original ore outcrop at Kiirunavaara. Figure 23: Kiruna Iron Ore Mine - Cross Section (source: By Borvan53 - Own work, CC BY-SA 4.0,) Tonnes mined per year: ~25–30 Mtpa (operating) Typical product grade: Pellets: ~67% Fe Fines: up to ~70% Fe Mine life remaining: Kiruna main level to ~2046, longer with deeper mining Due to mining-induced ground subsidence, a decision was made in 2004 to gradually relocate the centre of Kiruna town, with the transition planned over several decades to accommodate continued mining expansion (Figure 24). Figure 24: The close proximity of the townsite and the mine is clearly shown in the two photos. (source: The moving of the Swedish mining city Kiruna) 6.10 IOC – Iron Ore Company of Canada (Canada) Tonnes mined per year: ~18–20 Mtpa (operating capacity) Typical product grade: ~65% Fe concentrate / pellets Mine life remaining: ~20–25 years 7.0 The New Generation of the Iron Ore Business -Direct Reduction Pellets — The Race Toward Green Steel Starts at the Ore Body The business of iron ore has now come to the a stage where the "green" factor is playing a larger role. The old business of just putting >60% Fe ore into a truck and loading it onto trains and then supertankers are now no longer the main game being positioned for the coming decades. It is a well known fact now that mills in China are taking blends and with the cleaning up of the mills in China, the need for cleaner style feed into the furnace is now the talk of the town. The real answer is not hematite vs magnetite — it is grade and quality. Steel mills increasingly prefer High-Fe feedstock (>65% Fe) because it: reduces coke use improves productivity lowers emissions reduces slag volume Remember the following: Steel mills do not prefer magnetite simply because it is magnetite They prefer: higher grade + cleaner ore. Magnetite can deliver that, but only if the beneficiation economics work. That is why some magnetite projects struggle: high capex energy intensive grinding China Making DRI Happen China’s Steel Industry Work Plan (2025–26) emphasises modernization through electric arc furnaces and hydrogen-based ironmaking technologies. China’s steel sector is exploring direct reduced iron (DRI) + electric arc furnace (EAF) as a major low-carbon alternative to blast furnaces. The DRI-EAF route is widely seen as a promising pathway to reduce emissions and reliance on coking coal. However, China currently produces very little DRI, which is why the technology is now being actively developed. China is beginning to deploy commercial DRI facilities. China Baowu and HBIS have commissioned Energiron DRI plants, part of the move toward low-carbon steelmaking (IEEFA) The future of the iron ore industry is now in plain sight as China’s steel industry begins to develop direct-reduction iron (DRI) technologies as part of its decarbonisation strategy, which will increase future demand for high-grade DR-grade pellets. Companies like Vale are already onto this part of the business and the article (Figure 25) from Reuters clearly show that the company is more than talk. Figure 25: An article reporting what Vale is doing to create a "greener" iron ore business. 7.01 What Are Direct Reduction (DR) Pellets? Direct Reduction (DR) (Figure 26) pellets are high-grade iron ore pellets specifically engineered for use in Direct Reduced Iron (DRI) processes. Unlike traditional blast furnace feed (sinter or standard pellets), DR pellets are designed for gas-based reduction using natural gas or hydrogen rather than coke. Figure 26: Iron ores prior to reduction within the direct reduction process. (source: Fraunhofer IKTS) In a DRI plant, iron ore is reduced in the solid state (below melting point) using reducing gases (H₂ and CO), producing Direct Reduced Iron (DRI) or Hot Briquetted Iron (HBI) — the preferred metallic feed for Electric Arc Furnaces (EAFs). 7.01.1 Key Characteristics of DR Pellets High Fe content (typically 67%+) Very low silica and alumina Low phosphorus and sulfur High mechanical strength Uniform size and porosity These specifications are critical. Gas-based reduction is far less forgiving than a blast furnace. Impurities directly affect metallisation rates, energy consumption, and steel quality. 7.02 How Are DR Pellets Produced? Producing DR-grade pellets (Figure 27) is something that I have found in my research that does show in a schematic way the whole palletisation process. I acknowledge that this is just one flowsheet and there will be more newer and modified versions. However, this should give readers a simplistic view of the process and a real world version from one of Vale's operations. Figure 27: Schematic flowsheet of the pelletizing plants of Complexo de Tubarão (Vale) with the HPGR operating in regrinding pre-pelletizing (CAMPOS et al., 2019a). (source: Campos, Túlio. (2023). A NOVEL HPGR ONLINE MODELING AND SIMULATION APPROACH COUPLED WITH REAL-TIME INFORMATION.) 7.02.1 Step-by-Step Process Mining & Crushing Magnetite ore is mined and crushed. Beneficiation Magnetic separation upgrades Fe content. Silica, alumina, and other gangue minerals are removed. Result: High-grade magnetite concentrate (often 68–70% Fe). Pelletising Concentrate is mixed with binders (usually bentonite). Rolled into green pellets using disc or drum pelletisers. Induration Pellets are fired at high temperatures (~1,250–1,350°C). This hardens the pellets and develops required strength and porosity. Quality Control Testing for compression strength, reducibility, swelling index, and metallisation potential. 7.03 Why DR Pellets Matter For decades, the global steel industry has relied heavily on the blast furnace–basic oxygen furnace (BF-BOF) route. This traditional pathway consumes large volumes of iron ore fines, coke, and sinter. However, the steel industry is now under increasing pressure to reduce carbon emissions, and this is where Direct Reduction (DR) pellets become critically important. DR pellets represent a specialised type of iron ore pellet designed specifically for direct reduction iron (DRI) processes, which are increasingly used in electric arc furnace (EAF) steelmaking. As the world transitions toward low-carbon steel production, DR pellets are emerging as one of the most strategically important raw materials in the iron ore value chain. 7.03.01 Decarbonisation of Steel (source: ScienceDirect) The global steel industry produces roughly 7–9% of global CO₂ emissions. The traditional blast furnace route emits large amounts of carbon because it relies on coking coal as both fuel and reductant. Table 2: Direct Reduction offers a lower-carbon pathway: Because DR furnaces require high-purity iron feed, DR pellets are essential to making this transition possible. Steelmaking Route CO₂ Intensity Blast Furnace ~1.8–2.2 t CO₂ per tonne steel Natural Gas DRI + EAF ~1.2 t CO₂ Hydrogen DRI + EAF <0.2 t CO₂ In simple terms: No DR pellets → No large-scale green steel. 7.03.02 EAF Growth Electric Arc Furnaces are expanding globally, especially in: Europe North America Middle East These plants need consistent, high-grade feedstock — and DR pellets are essential. 7.03.03 Premium Pricing DR-grade pellets command price premiums over: 62% Fe fines Standard blast furnace pellets The market increasingly differentiates based on Fe grade and impurity profile. 7.04 Not All Magnetite Deposits Can Produce DR Pellets This is an important part of the process and this is also important for several projects that are in the DR-space. This phenomenon is like we can all be a King but we will never be one because we are not born within the family tree. Hence, it is important understand that Just because a project is “magnetite” does not mean it can produce DR-grade pellets. 7.04.01 Why? Some magnetite concentrates cannot reach 67%+ Fe without excessive grinding cost. Elevated silica or alumina can persist after beneficiation. Certain deposits contain deleterious elements (P, S, TiO₂). Grinding to ultra-fine sizes may create pelletising issues. Mineralogy influences pellet reducibility and swelling. 7.04.02 Ore body geology determines pellet quality. Projects must demonstrate: Consistent concentrate chemistry Suitable grind size distribution Metallurgical test work confirming DR specifications Induration performance Without the specifications required to be a DR capable magnetite source, “DR - Ready” is just marketing. This means: Magnetite deposits are often preferred because beneficiation can produce very high grades. Many hematite deposits cannot reach DR pellet specifications without significant processing. This is why many smaller companies targeting DR markets are developing: magnetite projects beneficiation flowsheets pellet plants Table 3: Suitable Ore Types Note that this is why This is why many DR pellet projects focus on magnetite deposits. Magnetite beneficiation can produce concentrates >68–70% Fe, which are ideal for DR pellet feed. Ore Type DR Pellet Potential Magnetite concentrates Excellent High-grade hematite (>67% Fe) Good Typical Pilbara hematite fines Generally unsuitable 7.04.03 Why This Sector Is Emerging Three major trends are driving DR pellet demand: Electric Arc Furnace steelmaking growth Hydrogen-based steel production Decarbonisation of steel DRI processes need high-purity iron units, which makes DR pellets critical. The Middle East, Europe and the United States are already relying heavily on DR pellets. 8.0 Global Companies Working on DR Pellets - The Big Boys 8.01 Vale S.A. - Brazil World’s largest pellet producer. Actively developing DR-grade pellet feed. Pushing “green briquette” concepts. Positioned to supply Europe’s hydrogen DRI push. Vale’s Carajás ores are naturally high grade — a structural advantage. 8.02 LKAB - Sweden High-grade magnetite producer. Major supplier of DR pellets to Europe. Central to the HYBRIT hydrogen steel initiative. Vertically integrated model from mine to pellet. Figure 28: One of LKAB's main products is iron ore pellets, a small ball consisting of a mixture of refined iron ore, oxides, and additives. The company is now increasing its production volume of iron ore pellets in Kiruna and slowing the transition to carbon dioxide-free sponge iron production in the northern Swedish city. Fredric Alm Swedish magnetite mineralogy is ideal for DR concentrate production (Figure 28). 8.03 ArcelorMittal (AMMC Canada) - Canada Produces high-grade concentrate and DR pellets. Strategic supplier to North American EAF steelmakers. Leveraging Quebec’s magnetite deposits. 8.04 Cleveland-Cliffs Inc. - US Supplies DR-grade pellets domestically. Operates an HBI plant in Toledo. Integrated into US steel decarbonisation. 8.05 Fortescue Limited - Australia Iron Bridge magnetite project. Aiming for high-grade concentrate. Tied to green hydrogen ambitions. Still proving long-term concentrate consistency. Australia has abundant magnetite, but not all deposits achieve DR specifications economically. 9.0 Small Iron Ore Companies Targeting the Direct Reduction Pellet Market The shift toward Direct Reduction (DR) pellets is creating a new niche in the iron ore sector. Large producers dominate the current supply, but several smaller or emerging companies are positioning themselves to supply DR-grade concentrate or DR pellets, particularly because green-steel producers require high-purity iron units. Below is a review of smaller iron ore companies working toward the DR pellet or DR pellet feed market. 9.01 Tacora Resources – Magnetite DR Pellet Producer Tacora Resources is a smaller North American iron ore producer focused on high-grade magnetite concentrate suitable for DR pellets. Region: Labrador Trough Province: Newfoundland and Labrador, Canada Nearest town: Wabush Mining district: Western Labrador / Quebec–Labrador Iron Ore Belt Figure 29: Scully Mine Location located in North-West Tasmania, Australia. (source: Mining Services) Key Location Context The mine sits in the Labrador Trough, one of the world’s major iron ore districts. It is close to other historic operations such as those around Labrador City and the large deposits mined by ArcelorMittal and Champion Iron. The region is connected to the port of Sept‑Îles in Quebec via the Quebec North Shore and Labrador Railway, which is used to ship iron ore concentrate to global markets. Key points Operates the Scully Mine Produces 65–67% Fe concentrate Material is sold to pellet plants producing DR-grade pellets Beneficiation upgrades lower-grade ore to high-purity concentrate Tacora sits in the North American DR supply chain, feeding pellet plants that supply electric arc furnace steelmakers. 9.02 Grange Resources – Magnetite Concentrate for DR Pellets Grange Resources Limited operates one of the few integrated magnetite pellet operations in Australia. Key points Owns the Savage River Mine Pellets produced at the Port Latta Pellet Plant Pellet grade around 65–66% Fe Located in North-West Tasmania, Australia Figure 30: Location of the Savage River Iron ORe Mine in Australia. (source: Hancock, E. and Wynn, E. Savage River underground project update. 9th International Conference and Exhibition on Mass mining, Kiruna, Sweden 17-19 September 2024) Although much of the product goes into blast furnaces, magnetite pellets are technically suitable for DR processes depending on chemistry. Grange demonstrates that magnetite beneficiation + pelletisation is the pathway most juniors are exploring for the DR market. 9.03 Kamistiatusset (Kami) Iron Ore Project – DR Pellet Feed Concept Champion Iron Limited (“Champion” or the “Company”) acquired the Kamistiatusset Iron Ore Project (“Kami” or “The Project”) on April 1, 2021. Figure 31: Location of the Kami Iron Ore Project. (source: Champion Iron Limited). Kami is located southwest of the towns of Wabush and Labrador City in Newfoundland & Labrador and east of Fermont, Québec. The Project is situated 21 km southeast of the Company’s operating Bloom Lake mine, in the Labrador Trough geological belt in southwestern Labrador, near the Québec border. Key points Magnetite deposit Target 65–68% Fe concentrate Intended supply for North American pellet plants The project has gone through restructuring but remains a reference case for DR pellet-focused development projects. 9.04 Magnetite Mines – DR Pellet Feed From Razorback Magnetite Mines Limited is one of the most prominent junior DR pellet feed developers. Project: Owner: Magnetite Mines Limited (ASX: MGT) Location: Braemar Iron Formation, near Hawker, South Australia Key points Concentrate grade ~68–70% Fe Designed specifically for DR pellet feed Targeting green steel markets Located 240 km from Adelaide, Australia. Figure 32: Location of the Razorback Iron Ore Project. (source: Magnetite Mines). Ore Grade Run-of-Mine Ore Average in-situ grade: ~16–18% Fe magnetite mineralisation This is typical of large magnetite Banded Iron Formation (BIF) deposits, where beneficiation is required. Concentrate Grade After grinding and magnetic separation: Target concentrate: ~68.8% Fe magnetite concentrate Impurity levels: Very low silica Very low alumina Very low phosphorus This quality is designed to meet DR pellet feed specifications. Project Scale JORC Resource: ~5 billion tonnes of magnetite mineralisation. Planned production: ~5 million tonnes per annum of high-grade concentrate in the initial stage. Mine life: potentially >100 years due to the scale of the resource. This makes Razorback one of the largest undeveloped magnetite iron ore resources in Australia. Direct Reduction (DR) Strategy The Razorback project is specifically positioned to support low-carbon steel production. Key elements of the DR strategy: Produce DR-grade magnetite concentrate (~68–70% Fe). Supply pellet feed for Direct Reduction (DR) iron plants. Target customers operating Electric Arc Furnace (EAF) steelmaking routes. Align with green steel initiatives in Asia, Europe, and the Middle East. 9.05 Champion Iron – Premium DR Pellet Feed Supplier While larger than most juniors, Champion Iron Limited is still considered a mid-tier producer and is a key supplier of DR pellet feed concentrate. Figure 33: Location of the Bloom Lake Iron Ore Project. (source: Champion Iron Limited). Project: Bloom Lake Mine Key points Concentrate grade ~66–69% Fe Low impurities Material used in pellet plants producing DR pellets Champion Iron is increasingly positioning itself as a premium feedstock supplier for green steel. 9.06 Iron Bear Resources Limited – Iron Bear Iron Ore Mine - Direct Reduction Strategy Project: Iron Bear Iron Ore Project Owner: Iron Bear Resources Limited Location: Labrador Trough, near the Québec–Labrador border, Canada Deposit Type: Magnetite iron formation Ore Grade and Product Deposit type: Magnetite banded iron formation (BIF). Run-of-mine grade: typically around 25–30% Fe. Magnetite ore is expected to be beneficiated through grinding and magnetic separation. Target concentrate: 69–71% Fe magnetite concentrate Ultra low impurities Low silica Low alumina Low phosphorus This type of concentrate is suitable for premium iron products and pellet feed. Direct Reduction (DR) Strategy Iron Bear Resources is being evaluated specifically with Direct Reduction (DR) iron production in mind. Key strategy elements: Produce high-grade magnetite concentrate suitable for DR pellets. Target DR-grade pellet feed (71% Fe). Designed to supply Electric Arc Furnace (EAF) steelmaking. Aligns with low-carbon steel production strategies. Strategic Advantages Located in the Labrador Trough, an established iron ore mining district. Magnetite concentrate allows consistent high-grade product. Potential to produce DR pellet feed and DR pellets, which is increasingly demanded by decarbonising steelmakers. Positioned to supply future green steel supply chains in North America and Europe. 10.0 Strategic Observations — The Samso View DR pellet capacity is structurally constrained.High-grade ore bodies are rare. Geology now matters more than scale.Grade consistency and impurity control determine long-term competitiveness. The green steel narrative is real — but selective.Only a subset of global iron ore projects qualify. Future premiums will widen.62% Fe fines vs 67%+ DR feed could see structural divergence. Test work is everything.Investors must look beyond headlines: What is the grind size? What is the silica level after beneficiation? Has reducibility been tested? Is induration proven? 11.0 Final Thoughts The shift toward DRI is not simply a steel story — it is an ore body story. The companies that control consistent, scalable, DR-grade magnetite concentrate will hold strategic leverage in the decarbonising steel industry. But the market must understand: Magnetite ≠ DR pellet. Only certain mineral systems, with the right metallurgy and economics, will make that leap. And that is where the next iron ore differentiation cycle begins. 12.0 Samso Concluding Comments Iron ore consumption since the 1960s reads like a story of steel becoming the physical language of economic development. The numbers show steady growth, then pauses, then a once-in-a-generation surge that lifted the whole system into the billion-tonne era. The producer timeline matters because iron ore is not just a rock story—it’s an infrastructure story. The miners who mattered most were the ones who built repeatable, scalable logistics and then kept product quality consistent enough for steelmakers to plan around. The Transition to Cleaner Iron ore The last few years look like a transition chapter rather than an ending. Global steel output is still sitting near record levels, but the growth engine appears to be shifting geographically, and that will shape which supply chains feel “closest” to the next wave of demand. For me, the current general narrative of a iron ore supply disruption in terms of a potential increase in supply affecting the current producers is unfounded. There may be more disruption currently with them potential escalation of hostilities in the US vs. Iran. One may say that the hostilities may be a catalyst for a increase demand for iron ore and take away the Simandou effect. Making Green Gestures What is more important is for investors to take note of the Direct Reduction Iron factor. If you look at the need to participate in the "green" effect that is encapsulating global economies, the obvious one is to create products that the steel mills can use to increase their part in the decarbonisation process. The big players are all preparing for the switch and the vendors of magnetite projects prone for beneficiation to higher iron grades are all slowly rubbing their hands. There is a concerted effort to seek magnetite projects that will allow the beneficiation process to achieve Direct Reduction status. The companies with projects in the Labrador Trough seem to be making the most waves and this is going to create a this area into the next Pilbara Money Printer. For a start, companies such as Champion Iron Limited , Iron bear Limited and Tacora Resources should be on the watchlist. The Direct Reduction Iron Players Champion Iron stands out as the clear leader, but the unique partnership between Iron Bear Limited and Vale is the one to watch. With a market capitalisation of around AUD $50M as of March 8, 2026, Iron Bear Limited appears to be an incredible bargain, considering their JORC Resource of approximately 16.66 billion tonnes of magnetite mineralization, with a potential Direct Reduction concentrate grade exceeding 70% Fe and a SiO2 grade of 1-1.2%. As a shareholder of Iron Bear, I am particularly interested in this subject. The fact that Champion Iron is also categorising their magnetite in this way indicates that this is not a ground breaking process. Iron Bear Resources Limited is not reinventing the wheel with their efforts. Is Simandou Too late The coming on of a haematite high-grade iron ore deposit may just be too late. This will be a process for time to see if there is going to be a transition from high-grade haematite ore to high-grade magnetite ore that can be made into the Direct Reduction Pellets. Nothing in Life stands still and we know that the need to create cleaner energy products is high on the agenda. 13.0 The Samso Way – Seek the Research Here at Samso, we pride ourselves on delivering content for investors that is independent and informed by over three decades of experience in the industry. Our content is well-researched and is only created if I see merit in discussing the company's story. Our mission is simple: cut through the noise and spotlight what matters—genuine stories, grounded insights, and real opportunity. Our content is well-researched and is only created if the team sees merit in discussing the company or concept. Investors can explore our three core platforms: Coffee with Samso Samso Insights Samso News There may be numerous paths to success in investing, but the common thread among successful individuals is that they remain committed to making informed decisions. Equip yourself with the right knowledge and tools, and you will be well on your way to achieving your financial goals. Most importantly, investors need to be absolutely diligent in understanding their own risk-reward tolerance and capabilities. Never bite off more than you can chew. As they say, Rome wasn’t built in a day, and the Great Wall stood because it took centuries to complete. The Samso Philosophy: Stay curious. Stay sharp. And remember—digging deeper always uncovers the real value. In Life, there is no such thing as a Free Lunch. Never bite off more than you can chew is my parting comment. Happy Investing, and the only four-letter word you need to know is DYOR. To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Cover photo: Hematite (GeoDIL number - 1308), Darla Sondrol. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Hematite_(GeoDIL_number_-_1308).jpg). Reproduced photograph, shown faded under a navy overlay on the article thumbnail. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer, or solicitation to subscribe for, purchase, or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try to write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation sees the benefit of what Samso is trying to achieve and has a need to share your journey, please contact me at noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.

Pure play natural gas and helium explorer D3 Energy Ltd is set to be the latest debutante on the ASX, with the company’s initial public offering (IPO) slated for April 26 this month. Under the IPO, the Africa-focused explorer aims to raise A$10 million for an offer of 50 million shares at an issue price of 20 cents apiece. With the coffers full, the company aims to explore and develop its natural gas and helium assets, situated in the Free State Province in onshore South Africa as well as fund general working capital. As a nation that is experiencing severe energy supply difficulties, South Africa is making the identification of natural gas reserves an important part of the present energy supply as well as the country’s energy transition. Primary focus Incorporated in April 2012, D3 Energy is an emerging natural gas and helium exploration company, aiming to acquire and explore interests in natural gas and helium projects in Africa. The company’s primary focus is on the exploration of, and where possible, the commercial production of natural gas and helium at its D3 project in South Africa (Figure 1). Importantly, gas samples taken at the company’s exploration right ER315 indicate the presence of helium within the natural gas. Looking ahead, D3 intends to separate helium from methane for potential commercial sale. Figure 1: Map of D3 Energy portfolio, Free State, South Africa (Source: D3 website) What are the company’s interests in the D3 Project? Upon listing, the company will hold 100% of Motuoane Energy (Pty) Ltd, a company incorporated in South Africa that holds the permits for the D3 Project (Figure 2). Currently, the company holds an 86.77% interest in Motuoane, an interest that was acquired on October 28, 2022, under the Motuoane Acquisition Agreement. Under the agreement, the company has agreed to acquire the remaining 13.23% interest in Motuoane upon the earlier of the first business day following July 2024 and the company receive conditional listing approval from ASX to be admitted to the official list. The offers are conditional on the completion of the company’s acquisition of the remaining 13.23% interest in Motuoane under the Motuoane Acquisition Agreement. Figure 2: Ownership of the exploration assets constituting the D3 Project once listed (Source: D3 Prospectus) IPO highlights The IPO is being facilitated by Peloton Capital Pty Ltd and Originate Capital Pty Ltd, serving as joint lead managers. Notably, the offering is not underwritten, reflecting the confidence of both investors and management in D3 Energy’s prospects. Applications under the public offer must be for a minimum of A$2,000 worth of shares (10,000 Shares) and thereafter, in multiples of $500 worth of shares (2,500 Shares). Figure 3: Indicative timetable (Source: D3 Prospectus) Samso's Thoughts Energy is one of the most narrated investment items currently and there are many opinions, especially the ones coming from the renewable space. I think that the investment community has latched onto this massive money-making concept and has again moved so fast that the reality of their intentions is not aligned. The investment sector has always been the initiator of great ideas that the world should partake in because they are correct. Just like the great notion of the "NINJA LOANS" that was the great learnings of the GFC. The repackaging of ABC loans was "ok", so we should not be concerned as they knew best. In a place like South Africa, the local discovery of power sources would be a money spinner but history has shown that places where there is a lack of jurisdiction authority always makes investments vulnerable. If D3 Energy can make this work, I am a big fan. As an investment for the mum and dads, I think serious DYOR must be made as this is a very vulnerable business concept despite the slow realisation that renewable energy is not sustainable. Get Deeper Insights The latest and most reliable information from experienced sources, that are completely unbiased are now available through a Paid Membership. Sign up here for a more trustworthy source of well-researched and independent information for investors. ------- Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. ------ About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research. Coffee with Samso Experience

East Coast Research - Australia’s Standout Rare Earths & Copper Opportunity (Dec 2025) Introduction – Splinter Rock, Western Australia & Gulf Creek, New South Wales - A Rare Earths and Copper Story. OD6 Metals Ltd (ASX: OD6) is shaping into one of Australia’s most strategically positioned critical minerals developers, underpinned by two assets at differing stages of maturity and differing exposure to global decarbonisation trends: 1. Splinter Rock Rare Earths Project – ~150 km northeast of Esperance, WA, hosting a large clay-hosted rare earth system with high NdPr content and exceptional metallurgy. 2. Gulf Creek Copper-Zinc Project – located near Barraba, NSW, within a fertile VMS corridor historically mined for high-grade copper. Both projects benefit from Tier-1 jurisdictions, with Splinter Rock (Rare Earths) tied directly into the Esperance Port corridor and Gulf Creek (Copper) positioned within NSW’s Renewable Energy Zones (Figure 1). Figure 1: Tenement Holding Area (source: OD6) The Business of the OD6 Metals: Focus – Projects OD6 operates a dual-commodity strategy that aligns with global electrification megatrends. Splinter Rock: A large-scale clay-hosted REE system totalling 682 Mt @ 1,338 ppm TREO, containing 209 kt of magnet rare earth oxides (MagREO). Gulf Creek: A high-grade copper system with historical production and modern drilling confirming up to 4.6% Cu. The company maintains disciplined project selection, having reviewed more than 30 copper assets before acquiring Gulf Creek. Highlights – Metallurgical Strength, Strategic Relevance & Resource Scale 1. Rare Earth Demand & Application Tailwinds OD6’s focus on magnet rare earths sits firmly within the strongest pull of global demand. The growth in electric vehicles, offshore wind turbines, defence technologies, and everyday electronics continues to elevate the importance of elements such as NdPr, Dy, and Tb. As shown in Figure 2, these minerals underpin a wide spectrum of modern applications — from high-strength permanent magnets to catalysts and specialised glass polishing — reinforcing why magnet rare earths remain the true value drivers in the sector. Figure 2: Uses of Rare Earth Elements (source: Eurare) 2. Metallurgical Differentiation – A Clear Standout in the WA Clay REE Sector Splinter Rock has emerged as one of Australia’s most advanced and clean metallurgical systems, supported by: Up to 75% NdPr recoveries (heap leach) MREC at ~56–59% TREO Extremely low uranium and thorium (<0.01%) Ambient-temperature heap leaching rather than high-cost tank leach This metallurgical profile positions Splinter Rock for a lower-cost development pathway while naturally reducing environmental and processing risk. Figure 3 illustrates the staged impurity-removal process and the resulting high-purity MREC product, reinforcing the project’s strong leachability and favourable reagent behaviour. Figure 3: Impurity Removal & Magnet REE Precipitation Profile (source: OD6) The simplified process flowsheet (Figure 4) underscores the practicality of the Splinter Rock development pathway. It highlights an ambient-temperature heap-leach system supported by nanofiltration for efficient reagent recovery, culminating in the production of a clean magnet rare earth concentrate. The flowsheet reflects a straightforward, scalable approach that aligns well with the project’s metallurgical strengths. Figure 4: Simplified Process Flowsheet (source: OD6) 3. World-Scale REE Market Context – Supply Chain Concentration The global reserves chart in Figure 5 reinforces the concentration of rare earth supply within a handful of jurisdictions, led by China, Vietnam, Brazil, and Russia. This level of geographical dominance continues to shape global supply chains and amplifies the strategic value of new Western-aligned projects. Within this context, Splinter Rock stands out as a significant Australian opportunity capable of contributing to a more balanced and resilient rare earth supply landscape. Figure 5: World’s Largest Rare Earth Reserves (source: East Coast Research & US Geological Survey) 4. Exceptional Resource Scale – Only 10% of Clays Drilled The Inside Centre extraction profile (Figure 6) highlights the strength and coherence of the mineral system already defined from just a small segment of the broader basin. The distribution of key magnet rare earth elements across this area reinforces both the scale and the consistency of the mineralisation. Inside Centre hosts 119 Mt @ 1,632 ppm TREO, providing a clear foundation for a potential starter operation. Regional EM mapping outlines more than 30 km of clay-hosted signatures, pointing to basin-scale continuity and expansion potential. Figure 6: Inside Centre Extraction by REE (source: OD6) With OD6’s current MRE of 682 Mt (Figure 7) coming from drilling only ~10% of the identified clay-hosted targets, Inside Centre serves as an early indicator of what remains possible across Splinter Rock. Figure 7: MRE by Prospect (source: OD6 & East Coast Research) The cut-off grade sensitivity in Figure 8 shows that Splinter Rock maintains strong tonnage and grade even as thresholds rise, reflecting the robustness of the clay system. This resilience provides early confidence in the project’s scalability and economic flexibility. Figure 8: Sensitivity of Resource to Cut Off Grade (source: OD6 & East Coast Research) Figure 9 highlights Inside Centre as a clear high-grade standout within the broader clay system. The concentration of elevated TREO grades in this area strengthens its position as a natural starting point for future development and underscores the quality of mineralisation already defined at Splinter Rock. Figure 9: Inside Centre High-Grade Standout (source: OD6) Taken together, these factors underscore that the broader resource potential at Splinter Rock is still in its early stages of being unlocked. 5. Copper Market Tailwinds – Gulf Creek Positioned for Upswing Copper remains one of the most supply-constrained metals heading into the 2030s, driven by electrification, grid expansion, and ongoing industrial demand. Copper futures on the LME continue to hold at historically elevated levels, reinforcing a supportive market backdrop for emerging discoveries such as Gulf Creek (Figure 10). Figure 10: Copper Futures on LME (US$ Per Metric Ton) (source: East Coast Research & Capital IQ) Long-term copper price trends point to a persistent, structural demand profile that continues to reinforce the metal’s strategic importance. Much of this demand is anchored by construction, electrification, electric vehicles, grid infrastructure, and broader industrial growth (Figure 11). Figure 11: Copper Demand by Sector & Region (source: Cruxinvestor) The forecasted deficit illustrated in Figure 12 underscores why new VMS systems like Gulf Creek are strategically significant. The widening gap between copper supply and demand points to a structural shortfall that is expected to deepen as global electrification accelerates. Against this backdrop, Gulf Creek’s early drilling success is particularly noteworthy, having already returned: 1 m @ 4.33% Cu 8 m @ 1.41% Cu, 1.26% Zn 6 m @ 1.32% Cu, 2.82% Zn Figure 12: Copper Supply & Demand Imbalance Likely to Grow (source: Bloomberg NEF Transition Metals Outlook 2024) Figure 13 highlights the strong correlation between iron magnetism and copper mineralisation at Gulf Creek, providing a reliable geophysical vector for targeting additional high-grade zones. Figure 13: Iron Magnetism vs Copper Mineralisation (source: OD6) Figure 14 outlines a series of magnetic targets identified through 3D modelling, reinforcing the scale of the system and guiding the next phase of drilling at Gulf Creek. Figure 14: Magnetic Targets from 3D Modelling (source: OD6) Figure 15 presents the Sandfire share price analogy as a reminder of how transformative early VMS discoveries can be, showing the kind of value uplift that can occur as a project moves from initial hits to demonstrated scale. Figure 15: Sandfire Share Price Analogy (source: East Coast Research & Capital IQ) About the Project 🔹 Splinter Rock – Metallurgy First, Scale Second Splinter Rock benefits from: simple leach chemistry, nanofiltration enabling >85% reagent recycling, and a geological profile dominated by reactive minerals (rhabdophane, parisite–synchysite). Figure 16 presents a weathering profile highlighting the clay-hosted zones and REE enrichment patterns that underpin OD6’s metallurgical success. Figure 16: Geological Weathering Model (source: CSIRO, Ore Geology Reviews) 🔹 Gulf Creek – NSW Copper-Zinc VMS System Historically mined for high-grade copper at the turn of the 20th century. Very limited modern exploration before OD6. Structural similarities to DeGrussa-style systems. 10 km of untested strike. Near-term Milestones to Watch Splinter Rock ✅ Bulk metallurgical sampling delivered to ANSTO ✅ A$1.5m testwork program underway Next milestones Bulk MREC samples for offtake (H1 2026) First Scoping Study Strategic partnerships Expanded resource and optimisation studies Gulf Creek Phase 2 drilling underway Down-hole EM to refine high-conductance targets Step-out drilling planned for >3 km of magnetic anomalies Continuous assays and modelling updates How Samso Understands the Investment Memo for the Company OD6 is moving toward becoming Australia’s most advanced clay-hosted REE developer capable of generating a clean, high-value MREC aligned with Western supply chains. Splinter Rock’s investment case is strengthened by: robust metallurgy, scalable heap leach processing, strong NdPr weighting, and expanding clay-hosted footprints. Gulf Creek adds asymmetric copper upside with a growing scale target and high-grade early hits. Peer Positioning Figure 17 shows OD6’s position relative to its peers, highlighting that despite a comparatively low market valuation, the company ranks strongly on both recovery-adjusted grade and recoverable TREO — effectively punching well above its weight. Figure 17: Peer Analysis, Bubble Chart 2 (source: East Coast Research) Splinter Rock Valuation Figure 18 outlines the implied valuation for Splinter Rock, highlighting a meaningful uplift potential based on the adjusted TREO resource of 0.55 Mt and an implied EV ranging from A$59.8 million (Base Case) to A$73.7 million (Upside) using median peer-set multiples. Figure 18: Splinter Rock Valuation (source: East Coast Research) Gulf Creek Valuation Gulf Creek is valued at 5% of Splinter Rock’s intrinsic value, generating an implied EV of A$2.99–A$3.69 million (Figure 19). Figure 19: Gulf Creek Valuation (source: East Coast Research) OD6 Total Valuation Total implied EV of A$62.8m–A$77.4m, translating to a fair value of A$0.317/share with 256–336% upside from the current A$0.08/share (Figure 20). Figure 20: OD6 Metals Valuation (source: East Coast Research) Samso Concluding Comments This research coverage is consistent with what Samso has been noting since our coverage going back to October 2022 ( OD6 Metals Limited (ASX: OD6) - The Rare Earth Elements Story | Coffee With Samso Ep. 158). The key to the confidence that I have is Brett Hazelden. When we first met, the confidence in his approach and the sincerity in the way he gave me in our many conversations on Coffee with Samso, has allowed me to feel comfortable in this story. The Splinter Rock narrative is emerging as a globally significant clay-hosted rare earth system where only a fraction has been drilled. The geological footprint and metallurgical clarity reduce the risk inherent in early-stage REE development. The integration of heap leaching, nanofiltration, and potential Chlor-Alkali capability points to lower operating costs and strong reagent efficiency, which are critical differentiators in the REE sector. Global supply chain recalibration away from China continues to favour Western-aligned developers with clean product specifications. OD6’s low-impurity MREC squarely meets that requirement and is likely to attract downstream interest. Gulf Creek adds an important copper exposure, with drilling already confirming mineralisation and geophysics suggesting scale. The copper market’s structural deficit amplifies the potential impact of any discovery. OD6 is therefore positioned with two commodities at the core of decarbonisation and electrification. Cover photo: Chrysocolla, malachite, quartz (GeoDIL number - 751), Darla Sondrol. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Chrysocolla,_malachite,_quartz_(GeoDIL_number_-_751).jpg). Reproduced photograph, shown faded under a navy overlay on the article thumbnail. The Samso Way – Seek the Research Every discovery begins with understanding — follow the geology, follow the metallurgy, follow the data. Our mission is simple: cut through the noise and spotlight what matters—genuine stories, grounded insights, and real opportunity. Our content is well-researched and is only created if the team sees a merit in discussing the company or concept. Investors can explore our three core platforms: Coffee with Samso Samso Insights Samso News There may be numerous paths to success in investing, but the common thread among successful individuals is that they remain committed to making informed decisions. Equip yourself with the right knowledge and tools, and you will be well on your way to achieving your financial goals. Most importantly, investors need to be absolutely diligent in understanding their own risk-reward tolerance and capabilities. Never bite off more than you can chew. As they say, Rome wasn’t built in a day, and the Great Wall stood because it took centuries to complete. The Samso Philosophy: Stay curious. Stay sharp. And remember—digging deeper always uncovers the real value. In Life, there is no such thing as a Free Lunch. Happy Investing, and the only four-letter word you need to know is DYOR. To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation sees the benefit of what Samso is trying to achieve and has a need to share your journey, please contact me at noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.

Mach7 Technologies (ASX: M7T), a leader in medical imaging software, continues to show impressive growth and strategic refinement under the leadership of CEO Mike Lampron. The company reported a 20% increase in Annual Recurring Revenue (ARR), reflecting the success of its transition to a subscription-based revenue model, which resulted in record sales orders of A$56.9 million in FY24. With a strong cash position of A$24.8 million and no debt, Mach7 is poised for further expansion and innovation. The company's focus on cloud enablement, service supportability, and interoperability aligns with the evolving demands of modern healthcare providers. Mach7’s strategic investments in product innovation aim to enhance patient care by empowering healthcare providers with better decision-making tools. Ideal for investors interested in companies driving technological advancements in healthcare, read our full blog on Mach7’s strategic positioning and growth potential by subscribing to Samso Insights on Patreon. Three types of membership on Samso Insights Choose one or more: FREE: These insights are free and available to all investors. Subscribe here for free. PAID MEMBERSHIP: If you are a bold investor and want more, you get access to the latest and most reliable information from experienced sources that are completely unbiased starting from US$10/month. Start accessing our exclusive content to help with your investment research. PAID ARTICLES: Trustworthy source of well-researched and independent information for investors. Choose what interests you and unlock your choice of article from US$10. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me on noel.ong@samso.com.au. About Samso

Hikmat Salam - Masters in Geology (National University of Malaysia and National Centre of Excellence in Geology, University of Peshawar, Pakistan) A wide range of mineral deposit types are hosted in the New England region of New South Wales (NSW), Australia. As of the present-day Himalayan-Tibet and Andes mountains, the New England Orogen (NEO) is one such amalgamated tectonic block where the subduction of the ocean, emplacement of ophiolite, accretionary complex, development of serpentinite belt, and intrusion of plutons with a wide range of metallic precipitations have worked and loaded the New England orogen with a broad range of natural commodities (Figure 1). The plutonic intrusions, ophiolite, serpentinised peridotites, chromitites, and eclogites suggest collisional settings and high-pressure metamorphic conditions in the New England and New South Wales region (Fig. 1). Such types of settings lead explorationists to study metallogenic provinces. Therefore, the NEO region was historically under investigation and exploration for mineral commodities including copper, silver, gold, tin, molybdenum, tungsten, bismuth, lead, and zinc. Industrial minerals including limestone, and gemstones including sapphire, ruby, diamond, quartz, emerald, and topaz were yet another natural commodity in the New England region. Fig. 1. Figure showing the geologic units and divisions in the New England Orogenic system. The geology and tectonic setting of NE orogenic system favour the mineralisation of important mineral suits. (Source: [1]) The major natural deposit systems such as magmatic, hydrothermal, hybrid magmatic-hydrothermal and metamorphic-hydrothermal systems dominate in the southern New England Orogen (sNEO). The Great Serpentinite Belt (GSB) of the sNEO along the Peel Fault and the ophiolite patches host the ancient mineral deposit systems where the dominant rock units include magmatic chromitite and sparse amounts of platinum group metals. The GSB extends to Port Macquarie, where lateritic weathering has produced elevated nickel, cobalt and scandium values, proving assets for further exploration. The accretionary complex and basement sediments of Carboniferous host massive sulphide base metal deposits and manganese horizons. Since the New England is an orogenic system (Palaeozoic) and multiple episodes of deformation have deformed the rocks, exploration for base metal deposits in the accretionary complex and basement sediments is therefore complicated. In addition to base metal deposits, these host rocks also contain several intermediate orogenic (metamorphic) gold and antimony deposits. The gold-antimony-tungsten system at Hillgrove is a thick stockwork-type deposit with over 200 individual veins and has been exploited for over 110 years (Fig. 2). The favourable geologic setting of these deposits is characterised by the concentration around major structures and intrusive (contact metamorphosed rocks). Late-stage lamprophyric and felsic dykes in the same structures occur as the hydrothermal gold - antimony rich veins. Fig. 2. Figure showing the location of the Hillgrove project in the New England Fold belt. (Source: [2]) The magmatic, hydrothermal, and magmatic-hydrothermal systems host a wide range of metallic minerals including tin (i.e. veins and disseminations in and around the Mole Granite), Mo-W-Bi pipes (e.g. Kingsgate, Deepwater) and Intrusive-Related Gold Systems (Timbarra and possibly Glen Elgin). Most of the mineralising granites are highly fractionated I-type granites and most are Late Permian to Early Triassic in age. Molybdenum The Australian government listed Molybdenum and Bismuth in the list of 30 critical minerals, which are essential for energy and security purposes. Molybdenum has a broad range of applications including heavy use globally in the development of digital technologies, electronic appliances and electrical vehicles, and computer gadgets, and is aimed to boost the green energy transition. The prices are going higher as per the hike in demand. Molybdenum-based materials have attracted widespread attention as they are a novel type of green energy storage devices in the superconductors. The historic Kingsgate Molybdenum project is still an asset for investors to put their financial and scientific efforts into revolutionising this globally demanded natural commodity. The historical work on the Kingsgate project in the late 1880s and early 1900s was revived by Auzex Resources Limited between 2005 and 2010. This has led to the recent interest by Taiton Resources Limited (ASX: T88) to look at the project again as market conditions have changed significantly with the decarbonisation and electrification evolution (Fig. 3). "The Kingsgate high-grade molybdenum project has a lot of historical work completed by Auzex Resources Limited and this will allow Taiton to work more efficiently to take the project to the ultimate goal of creating a producing asset." - Executive Director, Noel Ong. Fig 3. Figures (a and b) show the location of the Kingsgate Molybdenum project in the NEFB executed on the two leased blocks (ELA/6702, ELA6699/EL/9636). (Source: [3] and [4]) The Geologic and tectonic setting of the NSW and NEO promise resource potential for high-grade molybdenum in the thick hydrothermal and magmatic-hydrothermal settings. A broad range of plutonic rocks, extrusive and dykes including lamprophyres, granites, granitoids, dacites and andesites are pockets for such metallic mineralization (Fig. 4), especially for the Intrusive Related Gold Deposits. Fig. 4. Figure showing the geologic units and positions of key metals under exploration at the Kingsgate high-grade molybdenum project. (Source: [3] and [4]) Intrusive Related Gold Systems (IRGS) Intrusive Related Gold Systems (IRGS) are newly defined gold deposits associated with moderately reduced, I-type, intermediate to felsic intrusions. The deposit style is zoned and centred on a central mineralising intrusion. The hydrothermal fluids mineralising such types of gold deposits are usually carbonic to rarely saline. These systems are commonly associated with convergent plate margins and the New England Fold Belt (NEFB) is a typical convergent tectonic setting favouring the development of IRGSs (the Tooloom project) (Fig. 5). The IRGSs are characterised by variably a combination of Au with Bi, Mo, Te, W, As, Sn with low sulphide content i.e. <5%, and lack of iron ores (magnetite and haematite). The mineralisation styles are commonly in the form of sheeted veins and stockworks, breccia pipes, disseminated deposits, skarns, and distal base metal-bearing fissure veins. The gold and molybdenum contents vary along the vertical zonings, with gold anomalies concentrated at shallower depths and molybdenum anomalies at deeper depths. The shallower systems are characterised by breccias and carbonate alteration zones are associated with depths. Laterally, Bi and stibnite are concentrated close and at distal parts of the deposits, respectively. However, these criteria for IRGS and its characteristics are significantly in contrast to the Cu-Au porphyry deposits, though some overlap in the orogenic settings. Fig 5. Figures (a and b) showing the defined gold deposits in the NEFB of Eastern Australia with proven IRGS deposits (the Tooloom project) and the IRGS zoned deposit style with lateral variable anomalies of metals (i.e., Au, Bi, Sb, etc), disseminations, breccias, contact metamorphosed zone, and veins network. (Source: [5]) The IRGS model is defined in a few orogenic belts around the world including the Paleo-Tethys closure (deposits in China, and Kazakhstan) and in the NSW (in the NEFB). Some examples of the intrusion bodies in the NEFB are the Nundle Supersuite, the Uralla Supersuite, Moonbi Supersuite, the Gundle Belt, the Clarence River Supersuite, the Coastal Belt and various unnamed leucogranite intrusions. Veins, stockworks, greisens, pipes, skarns and disseminations are some common deposit styles associated with these intrusions. The Kingsgate Mo-Bi deposit (pipes, veins, and dissemination), the Glen Eden Mo-W-Sn deposit (breccia pipes and stockworks) and the Taronga Sn deposit (sheeted veins) are examples of intrusion-related deposits in the NEFB. The widespread occurrence of IRGS-affiliated mineral deposits and the presence of gold systems with the IRGS association, combined with the favourable granite geochemistry, highlights the IRGS prospectivity of the NEFB. Gold stocks as an important part of any investment portfolio, can offer investors exposure to the market without holding any physical gold. Most investors are not familiar with intrusion-related gold systems. These gold deposits are lower grade, but their large tonnage makes them some of the most productive assets in the world. That means they can be highly attractive prospects for gold-focused companies. However investing in gold-focused companies requires due diligence, as well as an understanding of the factors that can bring these entities success. Get Deeper Insights The latest and most reliable information from experienced sources, that are completely unbiased are now available through a Paid Membership. Sign up here for a more trustworthy source of well-researched and independent information for investors. ------- Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. ------ About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research. Coffee with Samso Experience Reference: 1. Hugo K.H. Olierook, Jasmine Gale, Franco Pirajno, Fred Jourdan, Christopher L. Kirkland, Noreen J. Evans, Bradley J. McDonald, Mark Krejci, Qiang Jiang, Anusha Shantha Kumara, Celia Mayers, R. Adam Frew, Hugo Kaag, Brent I.A. McInnes, Terminal tectono-magmatic phase of the New England Orogen driven by lithospheric delamination, Gondwana Research, Volume 106, 2022, Pages 105-125, 2. Larvoto Resources Limited: https://www.larvottoresources.com/projects/hillgrove-gold-antimony 3. Investing News: https://m.au.investing.com/news/stock-market-news/taiton-resources-ltd-eyes-production-path-at-the-kingsgate-highgrade-molybdenum-project-3147246 4. The Market Bull: https://themarketbull.com.au/2024/01/16/taiton-resources-submits-application-to-acquire-the-kingsgate-project/amp/ 5. McKay, B. A.. “Intrusion-Related Gold Systems in the New England Fold Belt – The Tooloom Example.” (2006). https://www.semanticscholar.org/paper/Intrusion-Related-Gold-Systems-in-the-New-England-%E2%80%93-McKay/78e44d8e2794b71bd71f52e725bcbf7020bf9ff5d71f52e725bcbf7020bf9ff5

An advanced copper developer looking to enter the world of copper producers in Chile. With a rising copper price and the realisation that copper is indeed in a supply crunch, this could be a worthwhile company to have a decent effort to DYOR. Marimaca Copper Corp. (TSX: MARI, ASX: MC2) is a Canadian exploration and development company focused on copper exploration in Chile. The company is listing on the ASX to gain access to Australian capital markets while maintaining its primary listing on the Toronto Stock Exchange (TSX). Marimaca Copper Corp. has a market capitalisation of C$563M and has an MRE of 238MT @0.44% Cu with 1,041kt of contained copper, and it is not your average mineral explorer looking for copper in South America. The IPO is a compliance listing to achieve a dual listing status for the company to legally create a path to access funds from the Australian Stock Exchange (ASX). It is best to seek advice from your equity broker as to how one would participate in this listing, as that would be above the capabilities of Samso. Our interest in reviewing Marimaca is that it may be an opportunity to get access in the ASX to a valued TSX company with a decent-looking copper-producing opportunity. The timeline for the Definitive Feasibility Study (DFS) is encouraging, and although this is not a guarantee of success, this is a great opportunity to be able to participate as a copper producer in a region well known for its copper mining and production. To make it simple, readers can use the links below to move faster through the review of the Marimaca Copper Corp story. 1.0 IPO Details 2.0 Share Options & Escrow 3.0 Use of IPO Funds 4.0 Escrow Arrangements: 5.0 Key Dates 6.0 Directors of Marimaca Copper Corp.: 7.0 Management 8.0 Marimaca Copper Projects & Locations 8.10 Project History 8.20 Marimaca Copper Deposit Summary 8.30 Marimaca Copper Project – Exploration & Drilling Summary 8.40 Geology and Mineralisation – Marimaca Copper Project 8.41 Regional Geology 8.42 Cover Rocks 8.43 Metallogenic Setting 8.44 Deposit Characteristics 8.45 Mineralogy 8.50 Mineral Resources – Marimaca Copper Project 8.60 Project Status 9.0 Sierra de Medina Project – Summary 9.10 Overview 9.20 Location, Access & Infrastructure 9.30 Mineral Tenure 9.40 Infrastructure and Mining Hub Overview 10.0 Samso Concluding Thoughts 1.0 IPO Details (source: Prospectus) Offering: 100 CHESS Depositary Interests (CDIs) at A$6.00 per CDI, raising a total of A$600. CDI Ratio: 1 CDI = 1 common share. Market Capitalization: C$562 million (as of the last trading day before the prospectus). Number of Shareholders: The company has several major shareholders, including Greenstone Capital LLP (25.31%), Assore International Holdings Ltd (14.99%), and Ithaki Ltd (9.47%). ASX Listing: Expected to begin trading - TBA. 2.0 Share Options & Escrow (source: Prospectus) Outstanding Stock Options (as of November 12, 2024): Exercise Prices: Range from C$1.25 to C$5.00. Expiry Dates: Between April 2025 and October 2028. Recent Stock Option Grants: 2023 Grants: marimaca.com Quantity: 0.5 million stock options granted. Exercise Price: Weighted average of C$4.00 per option. Option Life: 5 years. Valuation: Fair value estimated at C$0.8 million. 3.0 Use of IPO Funds The IPO proceeds will be used for: 1. ASX Listing Compliance & Administration. 2. General Working Capital. 3. Supporting exploration & development at Marimaca & Sierra de Medina. 4.0 Escrow Arrangements (source: Prospectus) Public Disclosures: Specific details regarding escrowed shares or lock-up periods for Marimaca Copper Corp. are not publicly disclosed in the available sources. Common Practices: Escrow arrangements typically apply to insiders or significant shareholders, especially during financing events or initial public offerings (IPOs). Such arrangements are designed to prevent large-scale selling immediately after these events, thereby stabilizing the stock price. Recommendation: For detailed information on any existing escrow agreements, it is advisable to consult Marimaca Copper Corp.'s official filings or contact their investor relations department. Note: The information provided is based on publicly available sources as of March 15, 2025. 5.0 Key Dates (source: Prospectus) May 18, 2023 – Updated Mineral Resource Estimate (MRE), increasing Measured & Indicated Resources by 44% to 200Mt @ 0.45% Cu. April 15, 2024 – Development update on the Definitive Feasibility Study (DFS), geo-metallurgical modelling, and permitting. May 22, 2024 – First Community Open House in Mejillones, improving ESG rating to an "A" score. July 16, 2024 – Strategic C$68M investment by Assore International Holdings (AIH) through share acquisition & private placement. August 7, 2024 – Closed C$30.3M private placements, increasing AIH's stake to 14.99% of outstanding shares. November 18, 2024 – Announced dual listing process on ASX to access institutional capital. March 13, 2025 – Expected ASX listing under the ticker "MC2," marking expansion into the Australian market. Target Production Timeline: 2028 – Advancing towards full-scale copper production 6.0 Directors of Marimaca Copper Corp.: (source: Prospectus) Michael Haworth – Non-Executive Chairman Extensive experience in mining finance and corporate strategy. Hayden Locke – President & CEO Strong background in mining investment, project development, and corporate leadership. Giancarlo Bruno Lagomarsino – Non-Executive Director Experience in investment banking and capital markets. Clive Newall – Non-Executive Director Mining executive with experience in resource exploration and project development. Tim Petterson – Non-Executive Director Focus on corporate governance and mining investment. Colin Kinley – Non-Executive Director Technical expertise in resource exploration and feasibility studies. Alan Stephens – Non-Executive Director Over 40 years of experience in copper exploration in Chile. Kieran Daly – Non-Executive Director Experienced in mining project evaluation and financing. 7.0 Management (source: Prospectus) • José Antonio Merino – CFO & Managing Director (Chile) • Sergio Rivera – VP, Exploration • Solange González – General Counsel & Company Secretary • Nico Cookson – Head of Corporate Development 8.0 Marimaca Copper Projects & Locations (source: Prospectus) The Company’s flagship asset is the Marimaca Copper Project in Chile’s Antofagasta region. It is one of the few greenfield copper discoveries made globally in the last decade and is a low-risk project with substantial exploration potential. Figure 1: Marimaca Project location map. (source: Prospectus) The Marimaca Copper Project (Figure 1) is situated in Chile’s Antofagasta Province, Region II, roughly 25 km west of the port of Mejillones, about 45 km north of Antofagasta city, and 1,250 km north of Santiago, Chile. The project site is positioned at approximately 374,820 E and 7,435,132 S in WGS84 UTM coordinates. The project is within top-tier utilities and infrastructure. The Marimaca Project is comprised of 20 mining/exploitation concessions covering approximately 961 hectares. These concessions are listed in the national mining claims register and are in Sierra Naguayán, Commune of Mejillones, Province and Region of Antofagasta. 8.10 Project History (source: [1- Luis Oviedo]) In the general Project area, modern small-scale artisanal mining activities were conducted from the 1990s to the mid-2000s, with underground workings reaching a maximum depth of about 100m. No modern exploration occurred until Coro Mining Corp. (Coro), which later became Marimaca Copper, began acquiring the Project's ground holdings. The Marimaca deposit was discovered in 2016 after a reverse circulation (RC) drill program. Coro then conducted detailed geological surface mapping, rock chip sampling, additional RC drilling, core drilling for geotechnical and geometallurgical studies, metallurgical test work, and mining studies. An initial resource estimate was completed in January 2017, with Mineral Reserves first estimated in 2018. Coro completed a feasibility study in June 2018 (the 2018 Feasibility Study). This study considered using conventional equipment for open-pit mining to supply a refurbished process plant, known as the Ivan plant, capable of producing 10,000 tons of cathode copper annually. The 2018 Feasibility Study is not currently the favored option for Project development. Marimaca Copper does not regard the study as current, and the Mineral Reserve estimates are also not considered current. Nonetheless, some baseline information from the 2018 Feasibility Study was utilized in the 2020 PEA. An Environmental Impact Statement (Declaración de Impacto Ambiental, DIA in Spanish) and the Mining Safety Regulations and Environmental Qualification Resolution (RCA) were approved on 5 July 2018. Mineral Resources were updated in late 2019 as part of an internal study of the Mixed area (MAMIX) and again in 2022, with results discussed in the 2022 MRE report. This included a total of 110,790m drilled across 429 drill holes. The 2023 MRE includes a total of 139,164m across 554 drill holes. Coro changed its name to Marimaca Copper in May 2020. 8.20 Marimaca Copper Deposit Summary Geology, Mineralization and Deposit Types (source: [1- Luis Oviedo]) Location & Context: Marimaca lies in Chile’s Coastal Copper Belt, among other Mesozoic-age copper deposits (e.g., Mantos Blancos, Ivan). It displays features of both manto-type and IOCG (Iron Oxide Copper Gold) deposits. Geology & Structure: Hosted in intrusives of the Naguayán Stock (monzodiorite-diorite), the deposit is heavily fractured, especially along a north-south (NS) structural belt. These fractures form "sheeted-like" zones that enhance permeability. Later, NW and WNW faults also aided in fluid movement and oxide formation. Mineralization: The deposit is characterized by a copper oxide blanket at surface, ~1,600m long (NNW), 400–500m wide, and 200–300m thick. The upper two-thirds consist of copper oxides (e.g. brochantite, atacamite, chrysocolla), while the lower third is mixed with secondary sulfides like chalcocite and covellite. Structural control is key to the distribution of mineralization. Alteration: The deposit shows Na-Ca (calc-sodic) metasomatism with limited hydrothermal destruction. Alteration minerals include albitite, chlorite, minor K-spar, and biotite. Limonite (goethite) is associated with oxides. Unique Features: While Marimaca shares some IOCG features (low pyrite, chalcopyrite-magnetite, sodic alteration), it lacks gold and shows an unusually intense supergene (near-surface oxidation) overprint. This secondary oxide blanket is thought to result from prolonged oxidation of an earlier sulfide-rich zone, despite the primary IOCG system being low in pyrite. This points to a unique evolution involving repeated oxidation and lateral copper migration. 8.30 Marimaca Copper Project – Exploration & Drilling Summary (source: Prospectus) Artisanal Mining History: Small-scale underground mining occurred between the 1990s and mid-2000s, reaching depths of up to 100 meters. Modern Exploration: This began in 2016 with the Company’s land consolidation and RC drilling that led to the discovery of the Marimaca Oxide Deposit. Exploration Activities Since 2016 include: Surface mapping and rock chip sampling Reverse circulation (RC) and diamond core drilling Geotechnical and geo-metallurgical studies Metallurgical test work and mining studies Mineral Resource Estimates (NI 43-101): First estimate completed in January 2017 Updated in 2019, 2022, and most recently in May 2023 Drilling Overview (as of May 2023): Total holes: 560 Total meters drilled: 139,164m RC drilling: 127,186m Diamond drilling: 11,978m (mostly PQ and HQ3 core sizes) Eight drilling campaigns over 2016–2022 Average drill spacing: 50m × 50m, oriented at 220° and 310°, with 60° dip Drilling Contractors: RC and core drilling completed by Drillex and Major Drilling Reporting Standards: Exploration results and resources reported under NI 43-101 Additional compliance under the JORC Code (2012) in supporting technical documents (Annexure D) 8.40 Geology and Mineralisation – Marimaca Copper Project 8.41 Regional Geology Oldest Rocks: Late Palaeozoic to Triassic metasediments and intermediate intrusives. Intrusive Activity: Early Jurassic to Lower Cretaceous intrusive stocks dominate the region. Younger intrusives host the Marimaca oxide copper mineralisation. Volcanics: La Negra Formation, a bimodal volcanic event (similar to a large igneous province), surrounds the project area. Dyke System: Extensive bimodal dykes (gabbro to rhyodacite) intrude both volcanics and intrusives, mapped over tens of kilometres. Dated at 145–148 Ma, coinciding with regional manto-type copper events. 8.42 Cover Rocks Tertiary marine sediments mark paleo shorelines on the Mejillones Peninsula. Valley gravels and ash layers to the east date back 10–12 million years. 8.43 Metallogenic Setting Manto-type deposits: Hosted in La Negra volcanics, typically in brecciated and vesicular lava flows, and occasionally in veins and breccias. Alteration is weak and subtle (albitisation, K-feldspar replacement). IOCG-style mineralisation: Occurs in Jurassic intrusives, with Marimaca seen as an atypical IOCG variant due to its unique structural controls and deep supergene oxidation. Porphyry copper systems exist near the project’s eastern margin. 8.44 Deposit Characteristics Marimaca Oxide Deposit: A supergene copper oxide blanket exposed at surface. Extends ~1,800m NNW, 500–700m wide, and 200–350m thick. Upper 2/3: Copper oxides Lower 1/3: Mixed zone with secondary sulfides Depth of Oxidation: Supergene alteration reaches depths of over 400m, due to favorable post-Jurassic geomorphological and climatic evolution. Structural Controls: Mineralisation follows N–SE dipping structures and late NW–EW fault systems. 8.45 Mineralogy Oxide Zone Terms Used by Company: "Brochantite zone": Actually dominated by atacamite (clinoatacamite) with minor brochantite. "Enriched sulphide" / "chalcocite zone": Zone with chalcocite and covellite, replacing chalcopyrite or coating pyrite. Gangue Minerals: Limonite, goethite, minor hematite, clays, iron oxides, gypsum. Associated Alteration Minerals: Actinolite, chlorite, and magnetite. 8.50 Mineral Resources – Marimaca Copper Project Original Reporting Framework: The Marimaca Copper Project's Mineral Resource was originally reported under the NI 43-101 standard. The most recent NI 43-101 technical report is titled "Updated Mineral Resource Estimation for the Marimaca Copper Project, Antofagasta Region, Chile," with an effective date of May 2023. JORC Code Reporting (2025 MRE): The 2025 Mineral Resource Estimate (2025 MRE) is the first version to be reported under the JORC Code (2012). SRK Consulting (Australasia) Pty Ltd acted as the Independent Technical Expert, preparing the resource estimate included in Annexure D of the technical report. Data Consistency: The 2025 MRE uses exactly the same drillhole data and estimation approach as the 2023 NI 43-101 Mineral Resource. JORC Compliance & Documentation: The JORC Code (2012) Table 1 for the 2025 MRE is provided in Appendix A of the Independent Technical Expert’s Report. This appendix includes: Drill collar locations Hole orientations Significant and high-grade intervals Summary of nearby and near-mine exploration drilling Material Significance: The 2025 MRE represents the Company’s primary material asset. Further details of the 2025 MRE and the Marimaca Copper Project are available in the Independent Technical Expert's Report in Annexure D and the Chilean Solicitor's Report in Annexure E. 8.60 Project Status (source: Prospectus) A Definitive Feasibility Study (DFS) is in progress. Environmental permitting submitted for copper cathode production. Expected to be a significant near-term copper supplier. 9.0 Sierra de Medina Project – Summary The Sierra de Medina Project concessions are located about 85 km north-northeast of Antofagasta and roughly 28 km east of the Marimaca Copper Project. This project includes four exploration activity centers (prospects): Pías, Antennas, Pampa Medina, and Madrugador, as illustrated in Figure 2 below. Excluding the Pampa Medina and Madrugador regions, the Sierra de Medina Project consists of 55 mining concessions and spans approximately 14,361 hectares. The Pampa Medina area consists of 12 mining concessions covering around 144 hectares. The Madrugador area includes 10 mining concessions and covers about 852 hectares. Figure 2: Sierra de medina Project Areas. (source: Prospectus) 9.10 Overview Location: ~85 km north-northeast of Antofagasta ~28 km east of the Marimaca Copper Project Exploration Prospects: The project contains four main prospects: Pías Antennas Pampa Medina Madrugador Total Concessions & Area: Core Project (excluding Pampa Medina & Madrugador): 55 mining concessions Covers ~14,361 hectares Held by ICAL, a Marimaca subsidiary Pampa Medina Area: 12 mining concessions ~144 hectares Held by SCM Elenita MCAL has a purchase option (dated 8 August 2024) under Article 169 of the Chilean Mining Code Madrugador Area: 10 mining concessions ~852 hectares Held by SLM Juanita and SLM Madrugador MCAL has a purchase option (dated 9 December 2024) under Article 169 of the Chilean Mining Code 9.20 Location, Access & Infrastructure The project benefits from similar infrastructure and access as the Marimaca Copper Project, due to its proximity (~28 km east). 9.30 Mineral Tenure Ownership and options for each area are clearly defined: ICAL: Core 55 concessions SCM Elenita: Holds Pampa Medina – under option to MCAL SLM Juanita & SLM Madrugador: Hold Madrugador – under option to MCAL Additional legal and tenement details are available in: Annexure E – Chilean Solicitor’s Report Annexure F – Tenement Schedule 9.40 Infrastructure and Mining Hub Overview (source: Prospectus) Proximity to Key Cities & Infrastructure: Easily accessible from Antofagasta and Mejillones via a well-maintained multi-lane highway. Antofagasta International Airport is just 45 km from the project. Final access is via maintained dirt roads from the paved B12 road, which connects to the Antofagasta–Tocopilla Route. Geographic & Environmental Context: Located ~39 km north of the Tropic of Capricorn, in the Cordillera de la Costa range. Elevation ranges from 400 m to 1,000 m above sea level. Dry desert climate, with minimal vegetation—except where irrigation or the coastal Camanchaca sea mist supports growth. Average rainfall is just 2–3 mm annually, though rare storms can deliver 12–30 mm. Conditions are suitable for year-round mining operations. 10.0 Samso Concluding Thoughts Marimaca Copper Corp. is an interesting IPO as it is bringing over a fairly well-established porphyry project into the ASX. Table 2 is a table that shows a comparison between the two projects in the company and it is clear that the two projects are at very different stages. Table 2: Comparing major attributes of the Marimaca Copper and Sierra de medina projects. Feature Marimaca Copper Project Sierra de Medina Project Location ~45 km from Antofagasta Airport ~85 km north-northeast of Antofagasta ~39 km north of the Tropic of Capricorn ~28 km east of Marimaca Copper Project Access Paved highways + dirt roads Similar infrastructure and access to Marimaca Main Focus Copper oxide & secondary sulfide deposit Early-stage exploration across 4 prospects Exploration Stage Advanced – NI 43-101 & JORC Mineral Resource defined Early exploration – concessions and option agreements in place Resource Status 2025 MRE under JORC (same as 2023 NI 43-101) No public resource estimate yet Total Area Not specified here (focused deposit area ~1,800m × 500–700m) ~15,357 hectares total (combined from 3 areas) Ownership Held by Marimaca Copper and its subsidiaries Mix of held and optioned concessions under MCAL Legal Framework NI 43-101 and JORC Code (2012) Chilean Mining Code – Article 169 for option agreements Key Prospects N/A (single consolidated deposit) Pías, Antennas, Pampa Medina, Madrugador As I mentioned earlier, the main reason for having a look at Marimaca Copper Corp is the Marimaca Copper project, which appears to be on a short timeline to potentially join the ranks of copper producers. Mining the oxides and treating the oxides is a great way to step into the copper-producing world in a shorter timeline. This is what the likes of Cyprium Metals Limited (ASX:CYM) were trying to achieve before the rising interest rate put an end to that concept. The company then changed management, and it has struggled to bring back the mojo. It is the lack of success with projects that help new projects such as Marimaca look attractive. Jurisdictions like South America are geared for business such as what Marimaca Copper Corp. is endeavouring to manifest. Chile, Peru, and Argentina are the mecca for such projects. The lack of funding opportunities in Northern America is creating some great opportunities for ASX investors. Whether this project will become economic will be part of this process of due diligence and patience. I would think that a Heap Leaching process would be a great way for the oxide ores, which would allow the question of economic viability a much greater chance of success. A perfect arid climate, like Australia's, is ideal for any heap-leaching ideas. I know this has been a long list of details, but I think this is a great way to summarise the information from the prospectus. Like always, DYOR and happy investing. To support our independent nature of our work, please head over to our Support Page and give us a helping hand in any of the ways listed. This is a new initiate for the Samso Platform, and it was always the concept of Samso when we started this journey in 2018. Reference: [1- Luis Oviedo] Updated Mineral Resource Estimation for the Marimaca Copper Project, Antofagasta Region, Chile Luis Oviedo, P.Geo. NCL Ingeniería y Construcción SpA Marcelo Jo MJO Engineering and Consultants in Metallurgy SpA Effective date: May 18, 2023 Report date: June 26, 2023 Cover photo: Abandoned bus in San Pedro de Atacama (Unsplash), Pablo Garcia Saldaña pagsa_. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Abandoned_bus_in_San_Pedro_de_Atacama_(Unsplash).jpg). Reproduced photograph, shown faded under a navy overlay on the article thumbnail. Disclaimer The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints. Read full Disclaimer. Share to Grow: Your Bonus Samso has just released an eBook: How to Add Value to your Share Portfolio A lesson on geological models sought by mining companies that gives insight and an understanding of which portfolios are better - and potentially more lucrative – investments. Click here to download this eBook. Download eBook If you find this article informative and useful, please help me share the information. I try and write about topics that are interesting and have the potential to be of investment value. It is not easy to find stories that fit those parameters. If you or your organisation see the benefit of what Samso is trying to achieve and have a need to share your journey, please contact me at noel.ong@samso.com.au. About Samso Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.