The final debutante for 2023, Enlitic Inc (ASX: ENL) hit the boards on December 19th after a successful $A21 million capital raise to accelerate the company’s commercialisation in the AI-powered medical diagnostics space. The Colorado-based outfit listed on the ASX via chess depository interests (CDI) currently trading at A$0.65, down 27% from the IPO offer price. Using artificial intelligence, the company is developing products that manage medical imaging data in radiology and licences such products to healthcare providers and original equipment manufacturers. Looking ahead, Enlitic has multiple software releases scheduled for FY2024, set to boost delivery to contracted customers and advance the capabilities of the product and the company’s strategy. Figure 1: ENL share price chart Company Overview Enlitic is a software development company that uses AI to develop software products that manage medical imaging data in radiology (such as MRI, CT scans, X-ray and ultrasound images) and licenses such products to healthcare providers. Its technology features a host of AI-powered modules that enable data standardisation, de-identification, anonymisation and workflow simplification. The company’s mission is to "revolutionise" healthcare by leveraging AI and data, empowering evidence-based decision-making, enhancing research, and transforming healthcare delivery. The Enlitic solution is built upon a software framework, creating a network between applications. It houses an ecosystem that enables and supports the exchange of information or content between different interdependent applications. The framework facilitates communications between modalities, Enlitic applications, Electronic Medical Records and PACS. What are Enlitic’s applications? Enlitic currently offers the following key products (Figure 2): ENDEX™: a medical imaging solution that standardises and structures data from medical images - this is Enlitic’s core product; and ENCOG™: de-identifies medical imaging data. Enlitic also has in development the following two products in its pipeline: ENCODE™: will seek to improve data quality that impacts coding and reimbursement; and ENSIGHT™: will seek to leverage interoperability with data analysis Figure 2: Real-world medical image database (Source: company website) What’s been happening lately? In 2023 alone, Enlitic has secured 10 successful contractual agreements. Following suit, Enlitic has expanded its subscription license agreement recently with leading diagnostic services provider Unilabs Laboratoire d’Analyses Médicales to provide its ENDEX software to Unilabs’ radiology business. Unilabs is one of Europe’s largest diagnostics companies with a network of over 180 imaging centres, conducting more than 5 million imaging exams annually. Unilabs will implement Enlitic’s ENDEX software across its radiology business to normalise its medical image data to a consistent clinical nomenclature and to connect relevant clinical content across its different clinic systems. The new agreement incorporates the remainder of Enlitic’s 2021 contract with Unilabs’ TMC business which resulted in a 10% increase in radiologist productivity, with faster reporting and the ability to handle higher exam volumes. FY24 outlook In the first two months of 2024, Enlitic continued to progress the conversion of its customer opportunity pipeline with several US customer agreements moving through the proof-of-concept phase towards license agreements. Throughout 2024, Enlitic aims to continue to grow its customer base and pipeline by leveraging its direct and OEM sales force to reach customers across key global markets. Enlitic also began collaborating with its distribution partners, developing joint go-to-market plans and developing sales training activities. Furthermore, the company is also developing data monetisation strategies in collaboration with its customers and healthcare providers with a view to brokering the sale of data on behalf of its customers. Samso's Thoughts It's amazing how the world of AI is now penetrating everyday life with levels of normality. Industries far and wide are now adopters of AI and in many cases, the technology is applied without any fanfare. Commercialisation of technology is now a common aspect of the industry. The use in the medical industry gets more attention as human beings need reassurance of its validity but in the movie industry, it is widely accepted. Mining and mineral exploration where I am mostly involved, the technology is now mainstream. The understanding and acceptance of AI in the medical industry will be where it would thrive the most and this is where companies like Enlitic are going to make headlines. As we can see, the commercialisation with contracts is the key for Enlitic. I am looking at this industry more now and like many investors in the ASX, I am doing some serious DYOR. Keep your portfolio options open and reach out to the management of the company and get your own thoughts processed in line. 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

BlinkLab, a trailblazer in neurodevelopmental diagnostics, is gearing up for its ASX listing, with the anticipated listing date slated for April 4, 2024, under the security code "BB1". With the subscription period concluding last week, this novel outfit is set to break into the ASX with its smartphone-based application integrated with an electronic platform, designed to perform neurometric tests that could be used on children as young as 18 months of age. Through this IPO, Blinklab is poised to garner A$7 million by offering 35 million ordinary fully paid shares at an issue price of A$0.20. The company focuses on the development and commercialisation of smartphone-neurobehavioural testing and will aid in the diagnosis of autism spectrum disorder (ASD), attention deficit hyperactivity disorder (ADHD), schizophrenia and other neurodevelopmental conditions. Upon listing, BlinkLab’s primary focus is to complete the necessary regulatory clinical studies and obtain the necessary regulatory approvals to bring the BlinkLab device to market initially as a diagnostic tool for ASD. Figure 1: Blinklabs indicative timeline (Source: Prospectus) What is the BlinkLab device? The BlinkLab Device combines fundamental neuroscience with state-of-the-art artificial intelligence and machine learning. The tests do not depend upon any verbal or social interaction and could be used at a very early age for children as young as 18 months old. “This marks a significant advancement, considering traditional diagnoses typically occur around five years of age, often missing the crucial early window for effective intervention,” says chairman Brian Leedman. Figure 2: How it works (Source: company website) The mobile device-enabled environment allows real-time detection of facial expressions, including eyes and eyelids, and uses encrypted data transfer and storage to protect patient privacy (Figure 2). The results from these responses are recorded by smartphone and uploaded to a confidential and secure online platform and the data is analysed using automated facial recognition and image processing techniques. The device consists of: the BlinkLab App: a mobile application available for download in the App Store for patients, caregivers and/or parents, effectively a front-end tool that helps collect test subjects’ information and responses to the BlinkLab Tests in real time; the BlinkLab Portal: the back end includes a fully built secure database and content management system (CMS) as well as an experimenters’ portal that allows for full customisation of the neurometric tests as well as data analysis, annotation and visualisation tools. Unmet need BlinkLab is entering the market at a time when the NDIS in Australia has come under scrutiny for the tremendous cost to the Australian taxpayer for which ASD diagnosis and treatment in children is the single largest expenditure. This smartphone-based ‘screening test’ will aid healthcare providers to identify these children at a much younger age than presently available providing a pathway to effective treatment and better outcomes for the child and their parents. Children with ASD are usually diagnosed between ages 2-4 years, with speech delays being among the first concerns for parents (Figure 3). However, with the help of the BlinkLabs app, infants at high risk for ASD may be assessed before full manifestation of the disorder – which the company believes is “transformational”. Figure 3: Typical ‘testing and diagnostic’ landscape of ASD (Source: IPO prospectus) Background BlinkLab was incorporated on August 17, 2021, to accelerate the development and commercialisation of intellectual property developed at Princeton University relating to smartphone-neurobehavioral testing. Before that, the company’s management team was engaged in extensive research and development of the underlying technology. Approximately A$4.4 million has been spent on the development of the BlinkLab Technology to date which has been funded by Government grants, industry sponsorships, and various seed raising following incorporation. The funds raised before incorporation were primarily used to develop and validate the diagnostic capabilities of the platform, whereas the funds raised from Seed Raising and Pre-IPO Capital Raising were used toward software development and clinical studies. A Word From Samso To me, the name Brian Leedman is one that I see frequently in this medical technology space in the ASX. I have known that name for the last 10 years and he has been very successful in this space. I am not surprised to see his name mentioned in this IPO. No doubt, I am sure this will be well supported. The space of neurobehavioural studies is close to me as I am a strong advocate of treating, caring and understanding mental illness. As this is a concept of Artificial Intelligence and machine learning, I would be very keen to know more about the applications and the rate of success. Mental illness is a growing disease because we are now learning the big spectrum that exists in society. Over the last 5 years, I have been involved in the understanding and caring part of the mental illness world so I am appreciating the potential upside of BlinkLab. Let's hope they make the IPO and generate some great innovation towards what is a massive market if the technology that BlinkLab is proposing works for its intentions. 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

Petratherm Limited (ASX: PTR) is intensifying exploration across its Woomera and Mabel Creek projects in South Australia, both targeting significant Iron Oxide-Copper-Gold (IOCG) deposits. The region mirrors the geology of globally important mining operations like BHP’s Olympic Dam and Carrapateena, positioning Petratherm to capitalise on the growing demand for copper and rare earth elements, critical for renewable energy and technology. At Woomera, exploration at the Winjabbie South and Rocky Well prospects shows promising copper mineralisation, with drill results suggesting similarities to other high-grade IOCG systems. Meanwhile, the Mabel Creek project, covering 3,798 square kilometres, has revealed potential for rare earth and copper mineralisation, particularly at the Area 5 target. This blog is essential reading for investors looking to tap into the critical minerals market. Sign up for your membership on Samso Insights on Patreon to read the full story. 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

Sino Iron Magnetite project in the early days. Western Australia’s iron ore landscape is undergoing a significant transformation as magnetite emerges as a major player in the sector. For years, hematite has been the dominant force in the industry, but recent developments are signalling a shift in market trends. (Source: Andrew Todd, "Billionaires bullish on magnetite as new hematite discoveries slow," The Sydney Morning Herald, November 4, 2024. Read the full article here.) The magnetite phenomenon has been in my mind for a while now, and since getting back into the market with Cyclone Metals Limited (ASX:CLE), I am starting to see that the Australian market is finally embracing the cleaner iron-ore process. My first involvement with Iron-Ore was around 2005, and as I have mentioned in my posts, the magnetite business was new in 2007 for me and, in a large part, for most of the people I worked with at that time. The Sydney Morning Herald article, which I missed when it was first published, was a great summation of the West Australian/Australian magnetite rise to favouritism. It has not gone unnoticed that this generation of a bullish tone is driven by the top end and not driven by the small-cap companies. Fortescue Metals Group Making a Statement: A Changing Market Dynamic Hematite has long been favoured due to its naturally high iron content, typically ranging between 60% and 63%. However, new hematite discoveries have slowed, prompting miners to revisit magnetite, which occurs at lower grades (20-30%) but can be beneficiated to produce a high-grade product exceeding 66% iron content. This beneficiating process was always looked upon as a barrier to the market, but it seems that this is no longer mentioned, which is interesting. For those who may not know, magnetite does occur in very high grades, as in up to 70%. Fortescue Metals Group (ASX:FMG) has led the charge, investing US$3.9 billion in its Iron Bridge magnetite project in Western Australia (Figure 1). Despite the high capital expenditure required to process magnetite, FMG achieved a premium of US$28 per dry metric tonne for its magnetite product in the September quarter compared to hematite. This significant price difference is driving renewed interest in magnetite (source: Sydney Morning Herald). Figure 1: Fortescue Metals Group’s Iron Bridge Magnetite Project (Source: Fortescue Metals Group: Iron Bridge Project.) What is interesting is that when the iron ore boom started in the early 2000s, FMG was being doubted by the majority of commentators in the industry due to technical deficiencies and the inability to sustain the funding for the business. In 2025, Andrew Forrest has proven everybody wrong and done astonishingly well. As I observe him transitioning into magnetite, I wonder what insights he has about the market now compared to when he first began, which fueled his initial drive. Could he be aware of shifts in demand from China, given his close ties to the Chinese market? While the green iron concept is still viewed as inferior by traditional haematite iron ore enthusiasts, might he possess knowledge that aligns with his vision? Not One Billionaire But Two: Andrew Forrest and Gina Reinhart are Backing Magnetite as Well. As I mentioned, the staggering highlight about this story is that it is being driven by the billionaires, and not just any billionaires, but Iron Ore Mining magnates Andrew Forrest (Figure 2) and Gina Rinehart (Figure 2A). Andrew Forrest's Iron Bridge magnetite project, which first produced and shipped ore in 2022, is located 1435 km south of Port Hedland on Nyamal Land in Western Australia. It is a magnetite mine owned by a joint venture between FMG Magnetite Pty Ltd (69%) and Formosa Steel IB Pty Ltd (31%). The mine has a capacity of 5-9 Mtpa and produces a high-grade wet concentrate product that is transported to Port Hedland through a 135-kilometre-long specialist slurry pipeline. Figure 2: A perfect identification of Andrew Forrest, which makes the March 2025 Time magazine a perfect read. (Source: Time Magazine) The Iron Bridge site is aiding Fortescue's shift towards Real Zero, aiming to be the first magnetite deposit to run on renewable energy by 2030. Fortescue Real Zero is the plan to eliminate the company's scope 1 and scope 2 emissions across FMG's Australian iron ore operations, without voluntary carbon offsets. For the benefit of our planet, our shareholders, and future generations. -FMG Gina Rinehart’s Hancock Prospecting has taken a controlling stake in the Mt Bevan magnetite project, a multi-billion-dollar operation north of Kalgoorlie. The project boasts an estimated 1.29 billion tonnes of magnetite and a 25-year mine life, with iron content potentially exceeding 70%, making it highly attractive to global steelmakers. Figure 2A: Gina Reinhart is making waves in the Magnetite Sector. (Source: Forbes Magazine) Notably, Legacy Iron Ore, which retains a 29.4% interest in Mt Bevan, is backed by India’s state-owned National Mineral Development Corporation (NMDC). With Indian Prime Minister Narendra Modi discussing the project’s significance with Rinehart, it is clear that magnetite is becoming a strategic resource for global steel production. Figure 3: Mt Bevan Magnetite Project Map (Source: https://legacyiron.com.au/projects/mt-bevan/) This project has been around for decades and came into notice during the last iron ore boom in 2005. As I have mentioned in previous blogs, projects such as this have been spending the last two decades trying to find a solution, so is the time to shine happening in the form of companies like Hancock Prospecting and FMG? Yilgarn and Esperance: The New Iron Ore Frontier As we talk about the magnetite projects, I am starting to imagine what it would have been like for the ports, such as Esperance, if the iron boom of 2005 had been sustained. There are several iron ore deposits in the Yilgarn that would have required an exit to market through Esperance, so if it is happening, the region may add iron ore to its suite of economic commodities. Figure 4: Map of Western Australia’s Iron Ore Regions (Source: https://www.researchgate.net/figure/ron-Ore-Deposits-and-Oakajee-Location-Map-Western-Australia_fig6_266318573) In 2025, the emergence of large-scale magnetite projects in the Yilgarn region suggests that Western Australia’s iron ore industry will be expanding beyond the traditional Pilbara stronghold. Companies such as Macarthur Minerals Limited (ASX:MIO) are making moves in the region with the Lake Giles Moonshine magnetite project, which holds over 1.2 billion tonnes of iron ore resources (Figure 5). However, looking at the corporate activities, I am not sure if this will become a reality. As the market improves, numerous hopefuls will attempt to attract market interest, necessitating a significant amount of DYOR from readers to ensure a sufficient level of due diligence is conducted to understand the anticipated surge of iron ore projects. Figure 5: The location of the Lake Giles project (source: Macarthur Minerals Limited). Macarthur’s strategic sale of its hematite assets at the Ularring project to Gold Valley has also unlocked significant financial potential. With offtake agreements in place and export infrastructure available at the Port of Esperance, Macarthur Minerals may indeed be making strategic moves. However, with a market capitalisation of just over AUD $6M, it would need some strengthening of its balance sheet before getting into a business that is traditionally the home of the major mining companies. Figure 6: Lake Giles Moonshine Project (Source: https://macarthurminerals.com/projects-item/moonshine-magnetite-project/) It is important to understand that in an industry like iron ore, unless you have a unique project like Fenix Resources Limited (ASX:FEX), the large bulk mining projects of billions of tonnes will never happen for junior companies. Fenix Resources was talking about 6 million tonnes of extremely high-grade DSO material. When you look at aspiring iron ore miner Cyclone Metals Limited (ASX:CLE), they have a big brother in VALE paying the bills. That is a very big difference in capability to complete the process of mining and delivering greater than 70% Fe pellets to customers. The Future of Magnetite in WA As the demand for higher-grade iron ore increases due to environmental and efficiency concerns in steel production, magnetite’s ability to produce a cleaner, high-purity concentrate is a major advantage. As I mentioned previously, with iron ore billionaires leading the charge and infrastructure in place to support large-scale exports, magnetite could play a central role in Western Australia’s next iron ore boom. The magnetite revolution is no longer a question of “if” but “when.” As more companies enter the space and technological advancements make beneficiation more cost-effective, the Yilgarn region and the Port of Esperance could soon rival the Pilbara as a powerhouse for iron ore production. (Source: Andrew Todd, "Billionaires bullish on magnetite as new hematite discoveries slow," The Sydney Morning Herald, November 4, 2024. Read the full article here.) 5.0 Samso Concluding Thoughts The magnetite evolution, or rather re-evolution, is looking more interesting by the day. Companies like Champion Iron Limited (ASX:CIA) in Canada are making a lot of money selling these iron pellets at close to 74% Fe content and making a lot of cash. Apart from FMG and CITIC (Sino Iron Project), there are no other players in the magnetite sector. The South Australian Green Iron initiative is still in its infancy stage, so the scene is set for some interesting scenarios for investors. In my opinion, the establishment of an iron ore mining scenario is a long-term proposition in creating it and also in the benefits of revenue. As retail investors, we are going to have to find someone that has enough leverage, and betting on FMG is almost the only option, unless you look at the potential of Fenix Resources Limited (ASX:FEX) making a play for this sector in the future. The other options are Champion Iron, but are they overpriced? The next option is the new kid on the block with Cyclone Metals Limited. 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: Magnetite (GeoDIL number - 1390), Darla Sondrol. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Magnetite_(GeoDIL_number_-_1390).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 on 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.

At the recent Future Facing Commodities Conference in Singapore, Australia's High Commissioner to Singapore, His Excellency Allaster Cox, emphasized the pivotal role of critical minerals in the ongoing global transition towards clean energy and advanced technologies. As we all know now, these minerals are essential components in industries such as electric vehicles, semiconductors, and defence systems, with demand projected to rise significantly in the coming decades.​ According to the International Energy Agency's 2024 Global Critical Minerals Outlook, mineral demand is expected to double by 2040 under current policies, with lithium demand increasing fivefold and nickel demand doubling (Figure 1). More ambitious decarbonization scenarios could see even greater increases, highlighting the sector's critical importance to the global economy and strategic supply chains, particularly in the Asia-Pacific region.​ Figure 1: Market value of key energy transition minerals in the Announced Pledges Scenario and the Net Zero Scenario, 2023-2040. (source: IEA.org) Australia stands out as a global leader in the production of these essential minerals:​ Lithium: 49% of the world's supply​ Cobalt: 4th largest producer​ Nickel: 6th largest producer​ Rare Earth Elements: 3rd largest producer​ (after China and the USA) Copper: 4th largest producer​ Beyond its rich geological endowments, Australia boasts significant expertise in mineral extraction and a strong track record as a reliable producer. The Australian government is actively investing in the sector through initiatives such as the Critical Minerals Strategy, which focuses on developing strategically important projects, attracting foreign investment, and fostering international partnerships. Additionally, the Resourcing Australia's Prosperity initiative represents a 3.4 billion investment aimed at advancing geological mapping and exploration.​ For investors, His Excellency reiterated Australia's commitment to supporting the critical minerals sector, which translates into numerous opportunities. The government offers various levels of support for projects involving minerals like lithium, manganese, nickel, and rare earth elements. Furthermore, Australia's collaborations with countries such as the US, EU, UK, India, Japan, and Korea through initiatives like the IEA Critical Minerals Working Party and the Sustainable Critical Minerals Alliance enhance the potential for international partnerships and market expansion.​ In conclusion, His Excellency stated that investing in Australia's critical minerals sector not only promises substantial returns but also positions investors at the forefront of the global energy transition, contributing to the development of sustainable and strategic supply chains worldwide. 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: Fish rock north of port hedland, unknown author. Public domain, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Fish_rock_north_of_port_hedland.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.

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

When you look at uranium globally, there are only a handful of jurisdictions that consistently come up in serious conversations—Kazakhstan, Canada, Australia, and Namibia. Although Namibia is well known for its uranium endowment, surprisingly, it is not talked about much as a potential powerhouse. It is pretty much a place where Paladin Energy Limited (ASX: PDN | TSX: PDN) made its mark and the name John Borshoff comes up when Namibia and Uranium was mentioned. It is also the famous company that the famous Rick Rule talks about making his multiple of bags betting on Paladin. Here is a part of the Coffee with Samso I did with Rick Rule who recounts his investment in Paladin. You can watch the whole Coffee with Samso here: Coffee with Samso Episode 70 is with Rick Rule, Senior Managing Director, Sprott Inc. | President & CEO, Sprott U.S. Holdings Mr Borshoff built Paladin from an unheralded gold explorer into a uranium producer worth as much as $4.2 billion in early 2007, as it prepared for first production from the Langer Heinrich mine in Namibia. Its shares was less than AUD $0.08 in April 2003 and peaked at $10.80 in April 2007 and that year valued Mr Borshoff’s Paladin stake at more than $200 million. For me, that was when I first learnt of uranium in Namibia. What I am learning now is that we should be understanding not the scale of Namibia’s uranium endowment, but the concentration of world-class deposits within a single geological province. What that means is that the Namibia Uranium story is more about the Gods gidt of a mineral system that kept on giving. Its like the Chocolate Factory that keeps delivering. Today, explorationists are all looking for that mineral system that is endowed and carry enough juice to deliver an "endless" gift of metal mineralisation. The World Nuclear Association data reinforces this mineral system story in Namibia in Figure 1, which also highlights that the mineral system is not Uranium concentric, but a geological feasts that are common in other well know mineral systems like the Kalgoorlie Region, the Pilbara Iron Ore Province, the mega gold systems of the Tintina Province in the Yukon..etc. Namibia is a powerhouse mining jurisdiction in its own right (Figure 1). There is nothing new about mining in the African coastal nation. It has its fair share of instability but like true form, economics will prevail over the human perversion to lust for power and greed. Figure 1: Major Mines in Namibia. (source Chamber of Mines Annual Review 2024). 1.0 Namibian Uranium Uranium was discovered in the Namib Desert in 1928, but significant interest in Rössing only emerged when intensive exploration began in the late 1950s. Rio Tinto identified numerous uranium occurrences and in 1966 acquired the rights to the low-grade Rössing deposit, located 65 km inland from Swakopmund. Two other important deposits identified during early exploration were Trekkopje, a calcrete deposit 80 km northeast of Swakopmund and near Rössing, and Langer Heinrich, a calcrete deposit discovered in 1973 by Gencor, 80 km inland from Walvis Bay and 50 km southeast of Rössing. Table 1: Known uranium deposits in Namibia In April 2011, the Namibian government declared that its state-owned mineral exploration company, Epangelo Mining Ltd, would have exclusive control over new strategic mineral developments, including uranium. However, this does not apply retroactively or equate to the nationalization of existing mines or leases. Both Paladin and Kalahari have expressed confidence that their assets are not at risk of expropriation. Table 2: Namibian Uranium Production - tonnes U In April 2012, Epangelo agreed to purchase a share of the Etango project and contribute a corresponding share of development costs. A task force was established in May 2010 by Epangelo and Russia's ARMZ, which briefly appeared to threaten existing developments, but the government provided strong reassurances at that time, which have since been upheld. New exploration licenses will be issued only to Epangelo, and others interested must negotiate farm-ins with it to become joint-venture partners. From 2007 to 2010, a strategic environmental assessment was conducted over the entire uranium province inland from Swakopmund and Walvis Bay. This assessment covered the entire region and all the projects, resulting in the Strategic Environmental Management Plan, which was implemented in 2011 by the government and individual project companies. 2.0 Global Uranium Distribution – The Reality of Concentration Figure 1A: Uranium Resources by Country 2021. (source: Mining Visuals) Uranium, the fundamental fuel for nuclear energy, is hosted by a handful of nations globally (Figure 1A) which is now starting to regain market sentiment. The one and off again conversation for a mineral boom in the quest for the "yellowcake" is starting to gain momentum again. Hence, I would think that these relatively small group of countries that have been fortunate enough to be considered the land of uranium "Milk and Honey" is going to get more attention as the world turns from the heat of the gold rush. 2.10 The Beginning of the No-Carbon Emission Era - The Birth of Clean Energy Five years ago, the slogan of "Evolution of A New Energy Boom" was being driven by the quest for global reduction in emission and a drive for a carbon-free future was being executed. Everything was about lithium and the critical minerals but the narrative forgot that renewable energy was not going to fuel cities and the giant industrial cities alone. The tsunami of electrical vehicles and batteries was never the end story. What are you going to use to run base load power to the cities and the industrial cities making global consumption. A conversation that the general public was avoiding. Green activist was having their day in the sun but not realising the realities of base load power was going to be their long term disposition. The source of what will ultimately be the most cost-efficient and least amount of carbon footprint, nuclear power will be a matter of time. Is it now? or are we going to have to spend more money before we realise our version of the invention of the fire and the wheel? From a Samso perspective, this is not just a geological observation—it has clear geopolitical and economic implications. When a commodity critical to energy security is controlled by a handful of jurisdictions, the dynamics of supply become as important as the resource itself. 2.10 The Big Players – Where the Uranium Sits 2.11 Australia - The King An interesting fact is that most people would not realise that approximately 28% of the world’s known uranium resources (1.68 million tonnes) is in Australia. That would make Australia, by far, the largest holder of uranium globally. The reason for this is geological. Australia’s ancient cratonic architecture, which means the the geological setting, such as regions like the Pine Creek Orogen and the Gawler Craton. The Gods of geology have been good to Australia and created the conditions for uranium to accumulate over long geological timeframes. These are stable, old terrains, and that stability is often where you find large, preserved mineral systems. What is interesting, however, is not just the size of the resource, but the fact that much of it remains undeveloped (this is mainly a political reason). Deposits such as Olympic Dam, Ranger Mine and Jabiluka Deposit highlight the scale, but policy settings and domestic energy choices have meant that Australia has effectively banked its uranium for the future. 2.12 Kazakhstan – The Production Powerhouse Second in terms of resource share is Kazakhstan, holding around 13% of global uranium resources. But this is where the story shifts. Kazakhstan is not just a resource holder—it is the largest uranium producer in the world, supplying close to half of global demand. The geological model here is very different. Kazakhstan’s uranium is largely hosted in sandstone roll-front deposits, particularly within basins such as the Chu-Sarysu and Syrdarya. These deposits are ideally suited for in-situ recovery (ISR), which is a lower-cost and less invasive mining method. Kazakhstan shows that how you mine is just as important as what you have. ISR has fundamentally changed the cost curve of uranium supply. 2.20 The Established Tier – Canada, Russia and Namibia Rounding out the top five are Canada (10%), Russia (8%), and Namibia (8%). These countries represent the core of global uranium supply, but each tells a very different geological story. 2.21 Canada – Grade is King The Athabasca Basin hosts the highest-grade uranium deposits in the world. These are structurally controlled systems within ancient sandstones, and they redefine what “high grade” means in uranium. 2.22 Russia – Diversity and State Strategy Russia’s uranium endowment spans both sandstone and hard rock systems. What stands out here is the state-backed approach to exploration and development, which ensures long-term supply security. 2.23 Namibia – Scale and Consistency Namibia’s uranium story is different again. The country is characterised by large, low-grade deposits, typically mined via open-pit operations. Namibia may not have the highest grades, but it has something equally important—scale and continuity of supply. In a tightening uranium market, that becomes a key advantage. Beyond the Top Five – The Broader Picture Africa as a whole plays a meaningful role in the uranium space. Countries such as Namibia, South Africa, and Niger collectively account for a significant portion of global resources, reinforcing the continent’s importance in future supply. At the same time, there are emerging jurisdictions beginning to build relevance. Countries like Mongolia, Uzbekistan, and Ukraine each hold smaller shares, but they represent optional growth in the global uranium pipeline. Table 3: Namibia vs Global Uranium Peers Region Style Key Strength Kazakhstan ISR Lowest cost Canada (Athabasca) High-grade Premium grade Australia Diverse Large resource base Namibia Alaskite + Calcrete Scale + stability 3.00 Why Namibia Is Where You Find Sleeping Uranium Tier-One Assets. The uranium story for Namibia is still young, even with what seems like a long history. There are large geological provinces potentially hosting multiple deposit styles being supported by existing infrastructure. What this means is that the probablity of new discoveries within the country is still high. What Namibia has that many "uranium" nations is there are three Tier-1 assets in country as we speak. As the narrative for nuclear power builds, the nation will be benefitting from its long history of large scale production. Rossing Uranium Mine One of the longest-running uranium mines globally Historically operated by Rio Tinto Now majority owned by Chinese interests Classic alaskite-hosted system Figure 2: Rossing Uranium mine. Figure 1: Uranium Resources by Country 2021. (source: Mining Visuals) The Rossing Uranium Mine is located in the Erongo Region of Namibia, approximately 65 kilometres inland from the coastal town of Swakopmund (Figure 2A). This positioning is not incidental—it places Rossing within one of the most important uranium-producing districts globally. Figure 2A: Location of the Rössing Uranium mine in the central Namib Desert, Erongo Region, Namibia. (Rössing Uranium Limited, August 2007). (source: [4]) From a logistical perspective, the mine benefits from proximity to: The deep-water port at Walvis Bay Established road and power infrastructure A long history of mining activity in the region Infrastructure is often overlooked, but in bulk, low-grade systems like Rossing, it is critical to making the economics work. Geologically, Rossing sits within the Damara Belt, a Proterozoic orogenic belt that has undergone multiple phases of deformation and intrusion. The uranium mineralisation is hosted in alaskite intrusions, which are leucocratic granitic bodies enriched in uranium (Figure 2B). Figure 2B: Summary of the tectonic setting of the Rössing area: A. Position of the Pan-African Damaran orogen between the Congo and Kalahari cratons. B. Summary of major features of the Damaran orogen taken from Miller (2008), highlighting areas showing highest grade metamorphism—the wider Rössing area occupies a zone of high-temperature, low-pressure metamorphism (arrows on metamorphic zones denote direction of increasing metamorphism). Mineral fields associated with syn- to late-tectonic granites are labeled by principal commodity. C. Selected areas of uranium-rich leucogranites showing general association with the Neoproterozoic Khan Formation and extent of the mapped area discussed in the text. Abbreviations: Bt = biotite, CKZ = Central Kaoko zone, EKZ = Eastern Kaoko zone, nCZ = northern Central zone, NMZ = Northern margin zone, NP = Northern platform, NZ = Northern zone, OL = Okahandja lineament, OML = Omaruru lineament, sCZ = southern Central zone, Sil = sillimanite, SF = Southern Foreland, SKZ = Southern Kaoko zone, SMZ = Southern margin zone, SZ = Southern zone, WKZ = Western Kaoko zone, WL = Welwitschia lineament. (source: Tim Gray; Judith Kinnaird; Justin Laberge; Alejandro Caballero, Skip Nav Destination, 2021 Uraniferous Leucogranites in the Rössing Area, Namibia: New Insights from Geologic Mapping and Airborne Hyperspectral Imagery. Economic Geology (2021) 116 (6): 1409–1434.) This same geological setting underpins the broader Erongo uranium province, which includes: Husab Uranium Mine Langer Heinrich Mine Trekkopje Project The clustering of these large deposit lends to the thought that these large-scale mineral system is capable of generating multiple Tier-1 deposits. Rossing is one of the longest-running uranium operations in the world, having commenced production in the mid-1970s. Historically operated by Rio Tinto, the mine is now majority owned by Chinese interests, reflecting the strategic importance of uranium supply. Key operational features: Large open-pit mining operation Conventional crushing, grinding and processing Long mine life supported by extensive resource base Over its life, Rossing has been a cornerstone of global uranium supply, consistently contributing to the nuclear fuel market. Rossing is not the highest-grade uranium deposit, nor is it the lowest-cost operation globally. What Rossing represents is the seed in Namibia creating the foundation asset within a globally significant uranium province. Rossing showed the typical geological attributes of significant systems and that is: Large, low-grade systems can be economic Mineral systems matter more than individual deposits Once infrastructure is established, a region can evolve into a cluster of world-class assets Rossing to the namibian uranium story is what the discovery of Olympic Dam is to the Australian IOCG province in South Australia, It is like the discovery of gold in Coolgardie that led to the establishment of Kalgoorlie as the Eastern Goldfields of Western Australia. Effectiovely, Rossing was the starting point of the Namibia uranium story. Everything that followed—Husab, Langer Heinrich, and beyond—sits on the shoulders of what Rossing proved. Husab Uranium Mine One of the largest uranium mines in the world Owned by CGN Mining Represents modern large-scale uranium development Figure 3: Husab uranium mine. (source: Slr Consulting) The Husab Uranium Mine is located in the Erongo Region of Namibia, approximately 60–70 kilometres from the coastal infrastructure hub of Swakopmund and within logistical reach of the deep-water port at Walvis Bay (Figure 3). As mentioned previously, Husab is hosted within the Damara Belt, the same tectonic and intrusive setting that underpins Rossing. Uranium mineralisation is associated with alaskite intrusions, where uranium is disseminated through granitic bodies formed during Proterozoic tectonic events. Husab is also an alaskite-hosted uranium deposit, but what differentiates it from Rossing is scale and continuity. Figure 3A: Domes of the south central zone of Damara orogen belt and their associated primary uranium deposit. (a) Zonation of the Damara orogen belt (modified after Goscombe et al., 2005; Grotzinger et al., 2008); (b) sketch map of the southern central zone showing locations of significant uranium deposits (after Kinnaird et al., 2007). According to a paper by Xu et. al 2025, three mineralization stages are believed to exist in the Husab uranium deposit: magmatic, hydrothermal alteration, and supergene leaching. Among them, the magmatic mineralization stage is the main stage, and uraninite is the most important uranium mineral. The uranium minerals formed in this stage include monazite, zircon, and rutile. The uranium minerals in the hydrothermal alteration stage primarily comprise pitchblende and coffinite, while those in the supergene leaching stage include uranothorite, coffinite, boltwoodite, sodium boltwoodite, and uranophane. Key characteristics: Very large tonnage uranium system Low to moderate grades typical of bulk deposits Mineralisation hosted within extensive alaskite bodies Amenable to large-scale open-pit mining Husab is essentially a bigger, more modern expression of the Rossing-style system. It validates that the Erongo province is capable of generating multiple large deposits—not just one. Husab is one of the largest uranium mines in the world, developed as a modern large-scale operation and currently owned by CGN Mining. Key operational features: Large open-pit mining operation High-throughput processing plant Designed for long-life, bulk production Since commencing production in the mid-2010s, Husab has quickly become a major contributor to global uranium supply. Operational Facts The Husab project received a mining licence from Namibia's Ministry of Mines and Energy in November 2012 and a groundbreaking ceremony was held at the site in the Namib Desert the following April. The first blasting of rock took place in 2014. Construction of the mine is scheduled to be completed by the end of 2015, with production then planned to ramp up to 5770 tonnes of uranium per year by 2017. The operation will be an open pit mine with an acid leach process plant on site. The Husab ore-body is claimed to be the third-largest uranium-only deposit in the world. With measured and indicated reserves of about 140,000 tonnes U, Husab is expected to operate for at least 20 years. The mine will comprise of two pits: the Zone 1 pit will be some 3km long, 1km wide and 412m deep; the Zone 2 pit will be about 2km long, 1.3 km wide and 377m deep. Husab is majority owned by CGN subsidiary Taurus Minerals following its 2012 purchase of former owner Extract Resources. The project is being developed by Extract subsidiary Swakop Uranium, in which Namibian state-owned mining company Epangelo acquired a 10% stake in November 2012. According to CGN, the Husab mine has sufficient reserves to supply enough uranium to power 20 GWe of nuclear capacity for almost 40 years. CGN currently has a fleet of ten operating nuclear power reactors with a total installed capacity of 10.5 GWe. It has a further 14 units under construction with a combined capacity of 16.6 GWe. Husab becomes the fourth uranium mine in operation in Namibia, the others being Rössing, Langer Heinrich and Trekkopje. China National Nuclear Corporation holds a 25% stake in Paladin's Langer Heinrich mine, entitling it to a corresponding share of the project's output. Langer Heinrich Mine The Langer Heinrich Mine sits in the Namib Desert, approximately 80 km east of Swakopmund and within the broader Erongo uranium province. This region is one of the most uranium-endowed terrains globally, hosting major operations such as Rössing Uranium Mine and Husab Mine. From a geological perspective, Langer Heinrich is a calcrete-hosted uranium deposit, which is quite different from hard-rock uranium systems. Mineralisation occurs in paleochannel sediments, where uranium has been mobilised and reprecipitated in near-surface environments under arid conditions. These deposits are typically: Shallow Laterally extensive Amenable to open-pit mining This style of mineralisation is characteristic of Namibia and is a key reason the country has become a globally significant uranium producer. Figure 4: The Langer Heinrich mine. (source: World Nuclear News) Ownership and Operational History Langer Heinrich is owned and operated by Paladin Energy Ltd, a name well-known to uranium investors. Key milestones: 2007: Commercial production commenced 2018: Operation placed on care and maintenance due to low uranium prices 2024: Restart achieved as uranium market conditions improved The restart is an important signal for the uranium sector, reflecting stronger long-term demand expectations tied to nuclear energy’s role in decarbonisation. Mining and Processing Langer Heinrich is a conventional open-pit mining operation. The processing route is tailored to calcrete-hosted ore and differs from many hard-rock uranium mines. Processing characteristics: No blasting required (soft material) Ore is scraped and trucked to the plant Uranium is extracted via alkaline leaching Final product is uranium oxide concentrate (U₃O₈) This relatively simple mining method contributes to: Lower operating complexity Predictable production profiles Scalability depending on uranium prices Infrastructure Advantage One of Namibia’s strengths—and something that often gets overlooked—is infrastructure. Langer Heinrich benefits from: Proximity to the Port of Walvis Bay (export logistics) Established road networks from Swakopmund Access to power and water (critical in desert operations) This is a key differentiator when compared to uranium projects in more remote or politically complex jurisdictions. Production and Strategic Importance At steady state, Langer Heinrich has historically produced around: 5–6 million pounds U₃O₈ per year (nameplate scale) From a Samso perspective, what matters here is not just the number—it’s the consistency and scalability. Operations like Langer Heinrich provide: Reliable supply into long-term contracts Optionality to ramp production with price signals Strategic leverage as nuclear demand grows Trekkopje Uranium Project – A Low-Grade Giant Waiting for the Right Cycle Location and Geological Context The Trekkopje Uranium Project is located in the central N+amib Desert, approximately 70 km northeast of Swakopmund and within the same uranium-rich corridor that hosts Langer Heinrich Mine and Rössing Uranium Mine. Geologically, Trekkopje is another example of a calcrete-hosted uranium system, formed in ancient palaeochannel environments under arid conditions. What sets Trekkopje apart is scale over grade. Key geological characteristics: Extremely large tonnage system Very low uranium grades relative to global peers Mineralisation spread across shallow, flat-lying sediments From a Samso lens, this is classic Namibia—big systems formed by surface processes, not deep hard-rock mineralisation. Ownership and Project Background Trekkopje is owned by Orano (formerly Areva), one of the world’s major nuclear fuel players. Key milestones: 2000s: Project advanced during the uranium bull market 2009–2012: Construction and early-stage production activities Post-2012: Placed on care and maintenance due to weak uranium prices Despite significant capital investment, the project has remained idle, highlighting a key theme—not all uranium deposits are equal in a low-price environment. Mining and Processing Concept Trekkopje was designed as a large-scale, low-grade bulk mining operation, relying on processing efficiency rather than grade. Planned/implemented processing approach: Surface mining (no drilling and blasting required) Heap leaching using alkaline solutions Designed to process very large volumes of ore A major technical feature of Trekkopje is its reliance on heap leach technology, which is essential for making low-grade deposits viable. However, this comes with trade-offs: Requires significant water supply High upfront capital intensity Economics highly sensitive to uranium price Infrastructure and Water Challenge One of the defining features of Trekkopje is not just the geology—but the infrastructure solution required to make it work. To support processing, the project involved: Construction of a desalination plant on the coast near Wlotzkasbaken Pipeline infrastructure to transport water inland Integration with regional infrastructure networks This highlights a critical Samso point: In Namibia, water is often the limiting factor—not the ore. Samso Concluding Comments As the world currently struggles with the consequence of the conflict with Iran, we are yet again, forgetting that the rush for a green energy world is still not hitting the right notes, in my opinion. The concept of base load power is still not being addressed and in a place like Australia, there is still a lack of direction on what is required to achieve an independence of the the "dirt fuel". Lets not get into the conversation of can we get rid of the use of hydrocarbons as that is another big discussion. Lets just do the easy discussion at this moment, are we going to keep increasing our energy cost and play the "renewable" energy game and ignore the environmental and social impact of creating power from renewable sources that many larger economies are now down-playing as an achievable target? What is looking like a real scenario, and this is where investors on the ASX will want to start looking at is the path towards using nuclear energy. Provinces like Namibia are a unique beast in terms of their source of uranium. Geoscientists and stakeholders in creating mineral resource companies are well aware of finding the right location to set their marketing narrative. An investor who understands the need to be in the right location will already be aware that if you get something within the Damara Belt, the likely chance of finding uranium is going to be high. However, as we all know, all mineral systems that are worth talking about have a large footprint. A valuable mining project is pretty much less than 5 sqkm and if you look at the mienral provinces globally, whether you are tlaking about urnaium, copper, gold or iron ore, they are always in the 100s and 100s of sqkm. In my research for this Samso Insight, the most commonly piece of commentary I read was that there has been a lack of exploration outside the "known" deposits. hence, the likes of the Rossing and the Husabs have never been looked oat outside what was discovered and mined currently. In my opinion, while the land of milk and honey for uranium may be Australia, the current political noise of "Anti-Uranium and Anti-Nuclear" will drive places like Namibia into the higher podium of the "Discover Uranium" status. The current deposits we have discussed are world class in their own specifications, but the lack of interest and the lack of funding to make Namibia a world class destination for companies like Paladin is now no longer a secret. I am sure there are numerous companies taking positions, and that will make another good Samso Insight in the near future. Reference: World Nuclear Association (https://world-nuclear.org/) Tim Gray; Judith Kinnaird; Justin Laberge; Alejandro Caballero, Skip Nav Destination, 2021 Uraniferous Leucogranites in the Rössing Area, Namibia: New Insights from Geologic Mapping and Airborne Hyperspectral Imagery. Economic Geology (2021) 116 (6): 1409–1434.) Kai Xu, Guanglai Li, Huaifeng Zhang, Wenming Dong, Xiaodong Liu, Xiongjie Zhang, Bin Wu, Renbo Wang, 2025. Uranium and U-bearing minerals in the Husab uranium deposit in Namibia: Occurrence, composition, age, and implications for uranium mineralization process, Ore Geology Reviews,Volume 182. BEN GOSCOMBE, DAVID GRAY, MARTIN HAND, Extrusional Tectonics in the Core of a Transpressional Orogen; the Kaoko Belt, Namibia, Journal of Petrology, Volume 46, Issue 6, June 2005, Pages 1203–1241 Wilde, A. Towards a Mineral Systems Model for Surficial Uranium Mineralization Based on Deposits in the Erongo District of Namibia. Minerals 2023, 13, 149. https://doi.org/10.3390/min13020149 Cover photo: Sossusvlei Dunes Namib, Vicartb. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Sossusvlei_Dunes_Namib.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. 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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

Metals Acquisition Ltd (ASX: MAC, NYSE: MTAL) made a significant impact with its ASX debut on 20 February 2024, raising A$325 million in a heavily oversubscribed IPO, and achieving a market capitalisation of A$1.18 billion. Despite a tough market for mining stocks, MAC shares have remained strong, trading at A$18.50, up from its A$17.00 listing price. The company’s core asset is the CSA Copper Mine in New South Wales, the highest-grade copper mine in Australia, which it acquired from Glencore. Led by CEO Mick McMullen, who has a track record of delivering value through major acquisitions, MAC is well-positioned to capitalise on the global electrification and decarbonisation trends. Investors interested in large-scale mining assets and the electrification metals market will want to read the full story. Subscribe now 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

The Chalice Mining Limited (ASX:CHN) narrative has centered around the Julimar discovery since early 2020. I would suggest that this discovery might have sparked two years of prosperity for small cap companies. Julimar, now better known as Gonneville (Figure 1), is a discovery of platinum group elements (PGEs), nickel, copper, cobalt, and gold, located just 70km north-east of Perth, near a town called Toodyay. Figure 1: The Gonnevelle wheatbelt scenery. (source: Chalice Mining Limited) The Chalice Mining journey since the 2020 discovery has gone from being the trailblazer to one that is now struggling for a new identity. Chalice was a favourite of the ASX small caps, with support coming from the retail and the institutional end. Raising money was not an issue, and management was praised for the innovation in making the discovery. Pricing sentiment for PGE (Platinum Group Elements), nickel, and copper was strong, and the general market sentiment for the company was strong in the market. In the early days, there were rumours of the grade of the deposit being sub-economical; hence, comments started to circulate that the processing cost would not be friendly to being a profitable business. History will show that the scoping study put an end to the speculation, and the share price chart in Figure 2 clearly shows what the market thought of the study. You can see the double dip in the share price chart, and that kind of indicated the whole market speculation process. I felt that this was worth a review because when I was at the Future Facing Commodities Conference in Singapore, I listened to the Chalice presentation and was very surprised at the messaging of the new Flow Sheet. I am curious if this could be the turning point for Chalice. The chapters below will help readers move around this review: 1.0 History 2.0 The New Chalice Mining Story 3.0 Resources 4.0 The New Flow Sheet - The Potential Game Changer. 5.0 Why Palladium? A Contrarian Opportunity in a Changing Automotive Market 6.0 De-risked and Development-Ready 7.0 The Greater Story for Chalice Mining. 8.0 Leadership with Proven Track Record 9.0 Sustainability at the Core 10.0 Investment Highlights and Upcoming Catalysts 11.0 Concluding Comments From Samso 1.0 History Over the last five years, the project has gone from being the darling of the industry to one that has had serious doubts about its economic viability, and the company is now trying to reverse the negative sentiments that have developed. As you can see below in Figure 2, the share price journey will give readers a great understanding of the journey. The drastic decline in share price came about when the company released its scoping study that showed an estimated higher capital cost and a longer time for first production. In the early days post-discovery, I had many conversations with industry participants, and the general consensus was that the numbers may not stack up. The release of the study confirmed this narrative, and the broader market was spooked and started the share price downfall. Figure 2: The Chalice Mining Limited share price chart as of 5th April 2025. (source: commsec) 2.0 The New Chalice Mining Story At the Future Facing Commodities conference in Singapore, I listened to the Chalice Mining presentation, and it looks like there is a new phase of development for the Gonneville project. Chalice Mining Limited (ASX:CHN) is now positioning itself with the new phase at the heart of the global energy transition with its flagship Gonneville Project. The Gonneville project is being described by Chalice Mining as the largest undeveloped palladium-nickel-copper resource located in the world’s best mining jurisdiction—Western Australia's Wheatbelt region (Figure 3). The company is marketing itself as delivering a rare combination of scale, jurisdictional safety, and critical mineral exposure—precisely what investors are seeking amid today’s global supply chain and geopolitical uncertainties. Figure 3: Gonneville PGE-Ni-Cu-Co Project. (source Chalice Mining Limited) 3.0 Resources Over the last 5 years post-discovery in 2020, there has been no doubt about the potential of a resource; the question has always been about the grade and, hence, the ability of the company to create an economical deposit for the market. As of the time of writing, April 2025, the project has the resources listed below: 17 Moz of contained Pd-Pt-Au (3E) · 960 kt nickel, 540 kt copper, 96 kt cobalt · 660 Mt @ 0.79g/t 3E, 0.15% Ni, 0.083% Cu This deposit sits at surface (Figure 4), allowing for low-cost, shallow open-pit mining, with high-grade zones supporting strong early cash flow. A recent flowsheet breakthrough now allows for simplified, standard flotation and CIL processing, reducing capital and operating costs significantly. Figure 4: The tier-1 scale Gonneville Resource. (source: Chalice Mining Limited) 4.0 The New Flow Sheet - The Potential Game Changer. In my eagerness to understand where Chalice is with its business, I was pleasantly surprised by the narrative of the story. Prior to the conference, I was not thinking that there was going to be a real solution to the demise of the Chalice story, but I think the potential recovery could be in the making with the "New Flow Sheet" concept. As I am not a metallurgist nor am I well versed with the ins and outs of the Gonneville story, looking in as a retail investor, I am thinking that this new way of processing could well be the magic pill to resurrect the fortunes of Chalice Mining. According to Chalice, this is the game changer for their business, and that is the new flow sheet to unlock the economical value of the Gonneville deposit. Eliminates costly hydrometallurgical steps Reduces pre-production capex by ~A$260M Cuts operating costs by ~A$4.10 per tonne Enhances margins for a bulk mining strategy The company estimates that Gonneville will be in the second quartile of the global PGE cost curve, making it one of the most competitive PGE projects in the world. Well, if this is to be true, I would think that investors need to do some serious DYOR, as if this story does turn around its ability to produce an economically viable process, this will be a nice place to put some hard-earned cash. 5.0 Why Palladium? A Contrarian Opportunity in a Changing Automotive Market The prevailing narrative about the death of internal combustion engines (ICEs) has proven premature (Figure 5). While battery electric vehicle (BEV) adoption is flattening, hybrid vehicle production is accelerating, especially in North America, Europe, and China. These hybrids require even more palladium than ICEs, sustaining demand even as BEV growth slows. Figure 5: Battery electric vehicle adoption has reached a plateau and demand for ICE/hybrid vehicles continues to grow (Source: China Passenger Car Association (CPCA), company data, Motor Intelligence). If anyone has visited a car dealer that is not a sole EV car dealer, you will hear the same story being told, and that car manufacturers are moving away from full electrification. The reality has set in that the world of total vehicle electrification is not practical. Goodness me, they only realised that now? Thank goodness. The Trump 2.0 administration in the US has repealed BEV incentives, and similar rollbacks are occurring in Europe. Hence, as the world re-equilibrates itself to a new transition of "Not 100% Vehicle Electrification," Chalice sees long-term upside in palladium as supply remains highly concentrated in Russia (45%) and South Africa (40%), both facing ageing infrastructure, geopolitical risk, and underinvestment. Recycling volumes are dropping amid low palladium prices, amplifying potential supply deficits. Gonneville offers one of the only large-scale palladium development exposures in a safe jurisdiction, offering investors a unique hedge against geopolitical and supply chain volatility. 6.0 De-risked and Development-Ready One of the key developments for Chalice is that since discovery, Chalice has delivered rapid progress in the form of acquiring land and regulatory approvals. In a way, the downturn in its share price is minimised as the lengthy process of gaining approvals would have created a period of "Nothing Exciting" for the market anyway. One of the fortunate timings for the company is that they raised a lot of money prior to its share price heading south. This has allowed the company to slowly work itself into a stronger position, and if the new narrative is correct, this is a godsend. Here is a list of Chalice's achievements: Acquired the 22km² farmland that hosts the resource Achieved both Strategic and Major Project Status from WA and Federal governments Defined mine infrastructure corridors, completed TSF design, and secured strong community and regulatory support Confirmed saleable products across all ore types and metallurgical domains As Chalice moves into another journey to get into production, the financing discussions are expected to begin in H2 2025, with the Final Investment Decision (FID) targeted in 2027. Chalice is currently fully funded to complete its Pre-Feasibility Study (PFS) and ongoing exploration, with A$90 million in cash and listed investments on the balance sheet. Massive Exploration Upside in the West Yilgarn Province. 7.0 The Greater Story for Chalice Mining. While Gonneville is a standout asset in its own right, Chalice holds ~10,000km² of tenements in the West Yilgarn Province, a previously underexplored region now shown to host major mineral systems (Figure 6). Key developments: Over 40 copper-gold and nickel-PGE targets defined Active drill campaigns underway at Barrabarra, Northam, and Kings Gold-in-soil anomalies discovered (e.g., 15km anomaly at Recherche West) Figure 6: Chalice has defined >40 Cu-Au-Ag and Ni-Cu-PGE targets in the West Yilgarn Province. (source: Chalice Mining Limited). As the market sentiment for the company swayed away from Cahlice over the last 12 months, the creation of attention towards other projects was predicted. The company had to do something to create attention, and with the prevailing gold sentiment, it is an obvious thing to do for Chalice. The new sentiment for Chalice was the Barrabarra drilling, and you can see some of that below in Figure 7. Figure 6: Chalice has Gold-copper focus at Barrabarra. (source: Chalice Mining Limited). Typically, the narrative is that these targets could potentially lead to multiple Tier-1 discoveries, and Chalice is applying a modern, systematic exploration approach to unlock value across this new frontier. Personally, the small-cap sector for the majority of the "new-age" commodity players will take time to recalibrate their position in the market. Lithium and the Rare Earth players have done their run, and they are all now narrating new stories. Chalice is the same, but as I have mentioned, the new "Flow-Sheet Story" may create some new thoughts. 8.0 Leadership with Proven Track Record The Board of Chalice is well credentialed, so there do not look like any real issues, and in my opinion, most Boards are competent and have the sincere drive for success, which is always aligned with their own personal interests. Hence, in a way, if the Board is listed with lots of incentives, a retail investor should be in some way comfortable that their potential investments will be aligned with the interests of the Board. Here are the current directors of Chalice Mining: Derek La Ferla, Non-Executive Chair – seasoned ASX 200 director, formerly with Sandfire Resources and Poseidon Nickel Alex Dorsch, CEO – former McKinsey consultant with strong project development and capital markets experience Garret Dixon, NED – ex-Alcoa and mining contracting executive with 30+ years in global operations Richard Hacker, NED – strategic finance expert, former Chalice CFO Supported by leaders across geology, metallurgy, ESG, and corporate development, Chalice has a team capable of delivering exploration success and project execution. 9.0 Sustainability at the Core As with all astute and aspiring miners, Chalice is proactively integrating ESG into every stage of development: Zero lost-time injuries or major safety events 38% women in workforce (above industry average) A$10M+ contributed to local communities since 2021 Working with 70+ Traditional Owners Commitment to no net biodiversity loss via the Gonneville Biodiversity Strategy The company is also aligning its reporting and planning to the Task Force on Climate-related Financial Disclosures (TCFD) framework. 10.0 Investment Highlights and Upcoming Catalysts To conclude this review, the main reason one would look at Chalice as an investment is that the company does present a rare combination of Tier-1 asset scale, financial stability, and growth potential. Key value drivers ahead include: ✅ Palladium market recovery due to ICE/hybrid demand and constrained supply ✅ Completion of Gonneville PFS (mid-CY2025) ✅ Financing and offtake milestones (from H2 2025 onward) ✅ Exploration results across a major new mineral province ✅ Continued strong government backing and streamlined approvals 11.0 Concluding Comments From Samso The concept of Samso Media and our content is to highlight potential investing concepts that arise because there is some angle that general media do not highlight. The mainstream content that retail investors tend to get for free is always more of highlights of the company rather than bringing to light the good, the bad, and the ugly. For these reasons, when Samso looks at Chalice Mining now, I am thinking if this could be the catalyst or the key to Chalice halting its downward value crisis. There is a lot of bearish sentiment in the sector, and it is not necessarily at the company but more at the sector that it is in as well. The sliding nickel price and the lack of interest in the majority of the non-gold sector are definitely not helping companies like Chalice Mining. Samso is looking for the counter-cyclical moments. As retail investors, we are always the last to know and the last to leave the sinking ship. Retail investors always take the highest risk while being told that this is the best time to take the risk. To me, if Chalice is genuinely able to turn around the cost of processing and is able to make Gonneville work, and coupled with the trend of a rising use of hybrid vehicle systems, then I think Chalice could be in for a change in fortune. Mining projects are not created; they are discovered, and they take time to be economical before they are able to produce. DYOR and check out my thoughts. I hope this helps readers gain some time in trying to understand a potential value proposition for something like Chalice Mining Limited. 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: Pentlandite with pyrrhotite (GeoDIL number - 1209), Darla Sondrol. CC0, via Wikimedia Commons (https://commons.wikimedia.org/wiki/File:Pentlandite_with_pyrrhotite_(GeoDIL_number_-_1209).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.