(source: Photo by Thom Milkovic on Unsplash) In 2009, I looked at the Paterson range as a remote place that was full of opportunities for the brave. Logistics was challenging and only a well-funded company would make any headway. One of these opportunities, the Nifty Copper Mine, has now fallen into the hands of a junior player. By all accounts, it appears to be a junior company with a competent management group. If you look at the group, they are operators and this is an operational project. Barry Cahill, the Managing Director of Cyprium Metals Limited (ASX: CYM), who had a Coffee with Samso with me last month clearly stated that Cyprium Metals will be producing copper plate in 2022. A New Copper Producer - An Overnight Success Now if production does take shape in 2022, I think the current valuation for the company would look cheap now. Things are Already Happening in the Paterson Range Although there was the discovery of Telfer (Au, Cu, Ag), Kintyre (U), Woodie Woodie (Mn) and Nifty (Cu) in the 1980s, there have not been too many highlights recently. There has been more activities, but I still would not call it a busy highway. What has been happening in recent times makes this region more accessible and known to the general ASX (Australian Stock Exchange) investor. Today we are looking at the Antipa Minerals and Rio Tinto JV at Citadel, Antipa and IGO Limited with the Paterson Province JV, Greatland Gold Havieron JV with Newcrest, and the discovery of O'Callaghan's Tungsten project by Newcrest (Mineral Resource in 2009). Then there is the Rio Tinto Winu Copper discovery. The Copper Story The sign of a Copper resurgence is now plainly in sight as the Copper metal price is now at over USD4 mark. With the rise of the EV revolution, there is an increasing interest in Copper price, and hence the Nifty Copper mine is going to be of greater interest. The Nifty Copper Deposit The deposit was discovered in the 1980s by WMC Resources Limited. It is 450km east of Port Headland, Western Australia (See Figure 2). The deposit is currently owned by Cyprium Metals Limited. Figure 2: Simplified geologic map of the Proterozoic Paterson orogen, showing the distribution of major stratigraphic units and mineralized occurrences (modified from Hickman and Clarke, 1994). Inset map shows the location of the Paterson orogen in Western Australia. [1] History [2] 1981: Oxide copper was first discovered at Nifty by WMC Limited. 1983: Drilling of the oxide resource led to the discovery of the deep sulphide resource. 1993: WMC commenced an open pit, heap leach, SX-EW operation on the relatively high-grade part of the oxide mineralisation. 1998: Nifty was purchased by Straits Resources Limited with subsequent expansion of the heap leach operation. 2003: Nifty and the surrounding exploration tenure was purchased by Aditya Birla Minerals. 2004: Underground development commenced exploiting the sulphide resource via a decline from the open pit. Construction of the sulphide concentrator commenced in October 2004. 2006: First copper concentrate produced. Open pit mining operations ceased. 2009: Heap leach operations ceased. 2016: Metals X Limited acquired Nifty through takeover of Aditya Birla Minerals Limited. 2021: Cyprium Metals Limited acquires Nifty. Geology [2] Nifty is hosted within the ~850 to 824 Ma Yeneena Supergroup of the >24,000 km2 Neoproterozoic Yeneena Basin, which in turn comprises part of the Paterson Orogen. The Yeneena Supergroup is subdivided into the Throssell Range and succeeding Lamil Groups. The Throssell Range Group is composed of the Coolbro and overlying Broadhurst Formations with the latter hosting both the Nifty and Maroochydore deposits. The deposit is hosted by the upper carbonaceous shale to pelitic schist unit of the Broadhurst Formation, which in the deposit area has been divided into four informal members: the Footwall Beds, the Nifty Carbonate Member, the Pyritic Marker and the Hangingwall Beds. The deposit comprises supergene oxide, sulphide and transitional mineralisation above stratabound hypogene sulphide mineralisation hosted by carbonaceous and dolomitic shales, principally within the Nifty Carbonate Member. Hypogene mineralisation is localised in the north-eastern limb and keel of the 15°SE plunging Nifty Syncline and extends for >1,300 m down plunge. Mineralisation is simple, with the only major sulphide minerals being chalcopyrite and pyrite, with minor sphalerite and galena. What's the big deal with Nifty? What makes me so interested in the Nifty project is the lack of exploration activities for at least a couple of decades. Ideas and technical advances over the last two decades alone would make this place attractive. Add the rising metal price to the mix and you are going to get some excitement in the coming years. The gold exploration and recently the nickel exploration success have come from renewed interest in the sector. With a greater injection of capital into an industry starved of real capital for the last two to three decades, numerous success stories have been appearing. The discoveries over the last 12 months can be said to have been discoveries waiting to happen. All it needed was the added capital. For many geologists, the discoveries were going to happen as soon as capital was added to the mix. The ground were always prospective but was just never explored mainly because of a lack of funding over the years. In Australia, the number of copper producers, especially in the smallcap to midcap level of companies are very rare to nil. The production of copper in Australia is small compared to the rest of the word as you can see in Figure 2. With renewed interest in the metal and the capital market being favourable to fund projects, this could make something like Nifty very valuable. Figure 4: Metals X ASX announcement: 10 March 2020, Nifty Copper Mine Resource Update figure is proportional production over time; data synthesized from U.S. Bureau of Mines (1932–1993), Schmitz (1979), U.S. Geological Survey (1994–2014, 1996– 2017), British Geological Survey (2001–2015), and The Mineral Industry: Its Statistics, Technology, and Trade (published by McGraw-Hill, 1982–1940). Note: data prior to ~1850 is clearly incomplete. [3] Cyprium Metals Limited raised AUD90M to fund for the AUD60M ($24M cash and $36M in Convertible Notes) purchase price with the path to Copper production in 2022. There is a lot of talk about copper projects, but in Australia, there are not many that compare to Nifty in terms of potential time to production. There is a reported oxide and sulphide Mineral Resource of over 650,000 tonnes of copper (Figure 4). This is outside the 714,908 tonnes of copper metal that has been produced since its first production in1993. What is exciting is that the existing resource base remains open both up and down plunge of known mineralisation. With this in mind, the technical studies and in-fill drilling of existing open pit resource will begin soon. The new owners are optimistic in reopening the open pit strategy. If the new owners had said that their strategy is to look at the underground opportunities, I would be not writing this Insight. The open-pit strategy with the current copper metal price should work. However, this is something for the mining engineers to comment. How and where are they going to start will be the next topic of Coffee with Samso with Barry Cahill. As you can see in Figure 5, the existing pit is in place, so I figure we are going to be talking about pit extension or adjacent resources that are not related to the existing pit. Will the New Nifty be any better than the Old Nifty? I have long believed that investing in an old project with legacy issues is merely looking for a disaster to be proven. However, the resource resurgence over the last twelve months has made me think differently. This cycle may be long enough and the project may be robust enough to work. Well, for now, it has made me rethink my thoughts as I see two factors that "seem" to make this cycle different. The first is that the capital markets are now looking for rewards and the amount of funding already in the market is almost creating a self-fulfilling situation. The monetary stimulus that we are seeing and hearing all over this planet will drive economies to go into overdrive. We have all learned that a rising Dr Copper is a sign of economic recovery. It looks like it is happening as seen in Figure 1. The second factor is that the EV Revolution will drive innovation that always leads to an aberration of how things used to work. The influx of capital into industry will make our version of an "Industrial Revolution". Remember, Copper plays a vital role in electronics, vehicles, telecommunications, electrical power generation and distribution systems, domestic and industrial piping, chemicals, currency, and general infrastructure. Can the Resource Increase? I found a paper that had some very interesting facts on initial resource/reserves and actual resources/reserves while mining. According to the paper [3], there is a common trend of growing cumulative production over time (Table 1), showing good conversion of resources to reserves and then mine production (e.g., Mount Isa, Falconbridge). Some sites show a relatively constant total endowment over time (e.g., Alumbrera, Lumwana, Sepon), although many show an increasing endowment over time, with some sites showing major increases (e.g., Olympic Dam, Collahuasi, Ok Tedi, Savannah, Antamina). Table 1: Selected Historical Reserve / Resource Estimates vs. Code-Compliant Estimates (year in brackets) [3] Figure 6 shows a series of graphs that show these relationships. Could this be something that is going to be happening with Nifty? I remember that when Silverlake Resources Limited (ASX: SLR) started their mining in Daisy Milano, many had thought that the LOM (Life Of Mine) would be short. That was in 2008 and they are still mining very well today in 2021. "These positive trends reflect the fact that mineable resources commonly grow for mining projects, demonstrating that the initial reserves and resources are sufficient for justifying mine development but that the geology and/or other factors are able to deliver an expansion of endowment over time. The shorter-term variations in resources and reserves can often be due to a period of lower market prices (e.g., Alumbrera in 2015, Bingham Canyon and Ok Tedi over 2008–2009)" [3] Figure 6: Examples of cumulative mine production (red) plus reserves (yellow) and additional resources (blue) over time for selected mining projects (note the additive nature and varying scales and time periods; all values are Mt Cu; other resources various colours; all data from government yearbooks, company reporting, technical and academic reports). Abbreviations: IOCG = iron oxide copper-gold, VMS = volcanogenic massive sulfide. [3] Figure 6 (cont): Examples of cumulative mine production (red) plus reserves (yellow) and additional resources (blue) over time for selected mining projects (note the additive nature and varying scales and time periods; all values are Mt Cu; other resources various colours; all data from government yearbooks, company reporting, technical and academic reports). Abbreviations: IOCG = iron oxide copper-gold, VMS = volcanogenic massive sulfide. [3] Figure 6 (cont): Examples of cumulative mine production (red) plus reserves (yellow) and additional resources (blue) over time for selected mining projects (note the additive nature and varying scales and time periods; all values are Mt Cu; other resources various colours; all data from government yearbooks, company reporting, technical and academic reports). Abbreviations: IOCG = iron oxide copper-gold, VMS = volcanogenic massive sulfide. [3] What I remember about Olympic Dam is that it started as a Copper mine and ended up being the largest Uranium in the world. If you look at this from a geological and statistical point of view, why would a sizeable mineralisation event that large, assuming there are no known structural events that closed the mineralisation, stop? Long life mines are not uncommon. If the metal price is right and/or management can reduce operational costs, many mines have lasted a long time. Rio Tinto Limited (ASX: RIO) and BHP Limited (ASX: BHP) are mining and shipping their iron ore at around the AUD$20/tonne ( in that range anyway). Newcrest has its Cadia gold mine at negative cost. The combination of copper and gold has meant that the gold is produced at AUD$7.83. What Does This Mean For Investors? For investors, and existing shareholders, I think the market needs to see the ducks lining up. Obviously, management needs to muster the ducks together and start making it happen. At this point, I don't have any reason to doubt that this will not be happening. For me, looking at the company from an investing strategy, taking positions now may not be a bad idea. The way I see this is that a potential copper producer in 2020 with a market capitalisation of AUD25.62M (09/03/2021) looks cheap to me :-). For those that have read till this sentence, a serious amount of DYOR (Do Your Own Research) may not be a bad idea. As I always say, DYOR is a good word, FOMO (Fear of Missing Out) is not a good word :-) Currently, I do not hold any shares in CYM. Gratitude Patreon: This is a platform for supporting creators like me. Please consider helping out and pick your reward here: If you would spend some time and support Samso Insights, I would be totally appreciative. So please feel free to pick a reward, or simply chip in any amount that tickles your fancy :-) https://patreon.com/samsomedia Reference BRUCE R. ANDERSON,†,* J. BRUCE GEMMELL, AND RON F. BERRY, The Geology of the Nifty Copper Deposit, Throssell Group, Western Australia: Implications for Ore Genesis: Economic Geology, Vol 96, 2001, pp 1535-1565 Metal X Limited website. Gavin M. Mudd1,† and Simon M. Jowitt, Growing Global Copper Resources, Reserves and Production: Discovery Is Not the Only Control on Supply: Economic Geology, Vol 113, No. 6, pp 1235-1267 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 If you find this article informative and useful, please help me share the information. I try to write 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. Download our 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. Keep us informed too! Please let us know your thoughts and send us any comments to info@samso.com.au. Remember to Subscribe to our YouTube Channel, Samso Media and our mail list to stay informed and make comments where appropriate. Other than that, you can also give us a Review on Google. #copper #samsoinsights #mining

As we look back on the last twelve months, it is bewildering how and why a world pandemic could create one of the strongest moves in commodity pricing for decades. Will the Bull keep the Bear in hibernation or is the Bear starting to wake up? Or has the Bear entered the woods already? This commodity price movement has made the mineral exploration sector so hot that you could cook an egg on it. That was how I used to describe the current state of the market to some associates in Singapore. I think this is not too far from the truth as you look at the series of price charts in Figure 1 below. Figure 1: A summary of metal pricing since the Covid-induced crash in March 2020. (Source: www.lme.com) I remember prior to March 2020, the common narrative on metals such as nickel and copper was that there was a shortage on at the LME (London Metals Exchange) and hence the pricing must soon reflect deficit. However, the price increase never materialised which got a lot of commentators wondering. The excitement that is in the market is best represented when you look at the ASX 200 (Figure 2), which is now currently higher than the high prior to COVID, at the time of writing this article. The recovery was observed in all sectors. Even the great Rick Rule was surprised at the rate of recovery. My last conversation with Rick was published on March 5th 2021 Commodities and Equities: Advice from Rick Rule. In this episode, Rick talked about what had happened since our first conversation twelve months before when we had our first two conversations. Gold, Equities, Sprott Management and Australian Gold Exploration - Rick Rule Markets and Commodities with Rick Rule Rick mentioned that he had underestimated the rate of recovery but I think that readers should take note of his initial reservation on the market. Rick may have been wrong on his initial thought in May 2020 but I think the pull back in gold price earlier this year shows that even the market knows that things are moving too fast for its liking. Figure 2: ASX 200 chart for the last 5 years. The S&P/ASX 200 (XJO) is Australia’s leading share market index and contains the top 200 ASX listed companies by float-adjusted market capitalisation. It accounts for 88% (December 2020) of Australia's equity market. (Source: www.marketindex.com) Today, when you talk to industry people, the mood is that the market is slowing down. The hype is lesser talked about and this is certainly a good sign. Why would that be a good sign, you may ask. Let´s see how I can make it clearer. Why is a "slow down" in the resource market a good thing for investors? Over the last twelve months, there has been an increased wave of noise on the ASX being generated by social media and publishers of investor relation products. Samso can be counted as being one of the contributors of the noise. However, Samso would like to think that we are trying to create content that attempts to reduce the noise. The results of our approach can be argued but the point of the statement is that there are many investors out in the market now that have very little understanding. As the market created so much momentum, investors were looking at a 500% or a 1000% gain as an acceptable investment. Anything short of that was looked upon as selling out too low or the trade underperforming. To me, these kinds of news are short of being dangerous. For those that have been following Samso, you would have noticed that we have mentioned continuously that investors should understand the story and not to just base their investment solely on someone's narrated version of investment attributes. Hence, this slow down in the market, or a sense of slowness in the market is a good thing. There was a pull back for many companies and even one of my favourite explorer-turned-potential miner came back (Figure 3). Figure 3: The share price chart for Musgrave Resources Limited (ASX: MGV). (Source: www.commsec.com.au) This pull back all happened across the board in this sector. As you can see, the recovery was imminent but not at the break neck speed from the last twelve months. I and many observers have said that a slow rise is many times better than one that climbs vertically. Hence, the gentle recovery from these stocks are great. Those companies that did not have a strong story behind the rise are now having to work hard to regain some momentum. Don't get me wrong, speculation is still around, but they are not indiscriminate like the previous months. What does all this mean? When you look at the path forward in terms of world economic growth, one has to feel the optimism that is in all miners. Almost everything that you read or watch involves the electrification of the world. I wonder if the "Green Movement" realises that to make the world "Electric" there is going to be a lot of pivoting of businesses. Hence, one would think that the need of the basic building blocks of mining and changing the way we do things now will create more anti-electric actions. When people think of the EV revolution, they think of Lithium, Cobalt, Graphite, REE and recently Nickel. When you think about my earlier statement that to make the EV revolution a reality, the metals that build the infrastructure to create this new world are the not-so-sexy metals such as Molybdenum, Nickel, Copper, Aluminium and Silver (Figure 4). There are more metals involved in the new EV movement than Lithium, Cobalt and Graphite. If you look at Figure 4, you will see the limited roles of these minerals. They may be the VIP guest but if the room is empty, these VIP guests will not be able to do too much by themselves. Figure 4: This graphic takes the data from the World Bank’s Climate Smart Report and outlines what metals each renewable technology will require and their overlapping uses. (Source: www.elements.visualcapitalist.com) There is no denying that there will be an increased need for all the metals that are shown in Figure 4 but the greater spread of needs in all forms of "clean energy" will require a greater expense of metals than most people would realise. I suspect that this will create a greater demand than supply can provide. Mining is not like Baking Bread The process of mining is complicated. It is made even more complicated by the process of proving the viability to mine and then to maintain the sustainability to mine. As we know, the demand-supply curve is the ultimate determinant for the viability of any business but when you add factors such as ESG (Environmental, Social and Governance), Sovereign Issue and lastly an artificial demand to make the EV revolution happen, there is going to be a big strain on supply. Figure 5: The raw material demand of the EV Revolution. (Source: www.elements.visualcapitalist.com) As you look at both Figure 4 and Figure 5, one will notice that there are a lot of minerals being used over a range of products. The process of clean energy is more mineral intensive than the old fossil fuel source of energy. So without getting into a debate about which source of energy is cleaner, we can all agree that we are going to need more minerals than the fossil-fuel revolution. Molybdenum, which has been one of the quietest metals in the recent commodity rush is now treading at levels near the last iron ore boom of 2010. Figure 6: Molybdenum price over the last 15 years. (Source: www.tradingeconomics.com) General investors would not look at Molybdenum as being part of the commodity rush but it is actually a critical component of steel making. It has just been listed on the LME (London Metals Exchange) but the pricing is still strongly controlled by contractual buyers. China is the main player and the price is typically aligned to the perceived demand for steel. Hence, like Dr Copper, it does give an impression that the market players may be indicating an increased demand for steel. The recent rise in the fortunes of Molybdenum is important as it may give a clue to the coming fortunes for the steel making process. This is another clue to the potential of the coming commodity market. If something like Molybdenum is moving in such leap and bounds, what would the rest of the list of metals be doing? Market Prices Are Aligned for Growth The market indicator of progress has been Copper. The term Dr Copper is coined to say that if the good Doctor is up, then the world economy is doing well or going to do well. Copper price has seen some good movement lately with a short hiatus when it lost traction. The drop in price occurred around the same time that iron price dropped to USD180 from a high of USD200+. This has been short lived and it looks like the prices of both commodities have since recovered to their recent levels. Figure 7: (1) Copper price from June 2016 to July 2021. (2) Historical copper price from since 1960. (source: www.macrotrends.net) In 2015, we saw the bottoming of commodity prices in unison. This also followed a unison rise in pricing following the bottom. I uses to tell people that I have not seen minerals and oil all moving in the same direction and many people at that time was saying metals were rising due to a shortage on the LME. Although this was in general correct, the real shift in pricing did not really happen till the end of the COVID crash of March 2020. If you look at Figure 1, you will see the alignment of metal pricing. It looks as if the metal pricing are all being chased by something. What is not so apparent is the mix of metals that are experiencing such attention. Tin is another one of the forgotten metals from the past. Even this humble little metal has taken a leap in its price (Figure 8). An article by Wood MacKenzie entitled - Tin – the forgotten foot soldier of the energy transition tells a great story about why Tin may become the next Cobalt (remember when it ran to USD92K). It is a great read which basically says that up to 90% of the world´s supply may be affected by ESG. If that is the case, the current high price of USD32K could be sustained or may even reach a much higher price. Figure 8: (1) Tin pricing from June 2016 to July 2021. (2) Historical Tin pricing from 1973 to 2021. (Source www.lme.com and www.tradingeconomics.com ) So What Does All this Mean? I have to say that in my 30 years in the mineral resource industry, I have never felt that this continuing run of good fortunes in my industry may actually have very long legs. When you have seen as many boom-bust cycles as an exploration geologist, you are constantly in disbelief of any market rise. The need to execute the EV revolution will create the situation for a greater need for all metals. In Figure 4, we see that there are five metals that are spread over a minimum of 5 sources of renewable energy. The fact that we are needing more Nickel, Copper, Aluminium, Molybdenum and Silver tells me that the shortage that was been narrated in the last 7 years will get worse. The shortage of base metals such as Nickel and Copper is well known and there are no arguments, but now the equation will be significantly and critically imbalanced. The recent dip in copper and iron ore price was very short lived as we are now seeing that the price is near or as high. There were talks that the Chinese government was trying to instigate selling pressure to decrease the price of metals but it seems that has not happened. If the Chinese selling theory was correct, then potential rise of future metal prices will be a matter of fact. I don't think Lithium supply will be a driver as there is no shortage of Lithium. If the world needs more supply, there will be investment and producers will just produce more to meet the demand. Nobody needs to find more Lithium. Now, Nickel Sulphides is another story. There is actually a problem with finding more metal and because of that, the price of Nickel will rise. An additional factor for pushing nickel prices up is the projected demand. If you cannot find more and you cannot feed supply, you have a growing problem. The issue with Copper is not a lack of supply. It is a lack of mines and mining grades. The current mines are all mining lower grades and hence the cost of production will rise. Similarly, like the search for nickel sulphides, projected demand and the slow process of market equilibrium will create tension in price and supply. As the world wakes up from a pandemic, the increasing need to revitalise the world economy itself will make the need for metals a priority. In my opinion, there is ample evidence to support a continued run on commodity prices. Another reason why I think this market is here to stay is that brokers are telling me that a portion of the industry will only look at AUD10M to AUD15M raise for new IPO. The other half of the broking industry is telling me that they can do the small AUD6M raise but also to get in the back of the line of six other companies waiting. All this work and money, coupled with an extremely tight labour market, is why I cannot see a slow down anytime soon. Gratitude Patreon: This is a platform for supporting creators like me. Please consider helping out and pick your reward here: If you would spend some time and support Samso Insights, I would be totally appreciative. So please feel free to pick a reward, or simply chip in any amount that tickles your fancy :-) https://patreon.com/samsomedia Brilliant-Online: Our investment articles are also shared across Brilliant-Online magazine. Check out their investment column. 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 If you find this article informative and useful, please help me share the information. I try to write 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. Download our 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. Keep us informed too! Please let us know your thoughts and send us any comments to info@samso.com.au. Remember to Subscribe to our YouTube Channel, Samso Media and our mail list to stay informed and make comments where appropriate. Other than that, you can also give us a Review on Google.

May 2020 was kind of a D-Day for the glove making sector. The KLSE (Kuala Lumpur Stock Exchange), where the world's largest producers congregate, had one of those light bulb moments where investors pulled into all the glove makers. The run was exceptional as you can see in Figure 1. Figure 1. Share price charts for the biggest four glove manufacturers in the KLSE. (source: Investing.com) The glove sector has been doing exceptionally well in the last decade but this May, it took a turn for the stratosphere. If anyone ever doubts the seriousness of COVID-19, think again. Speaking to punters from Malaysia, the run was short of spectacular. Just so that readers get an appreciation of the run, these companies are not your penny stocks, they are companies with a market capitalisation in the billions. Figure 3, taken from a research note by CGSCIMB on 15th July, gives a good summary of the nature of these companies. As you can see from the charts, those investors were making up to 10 baggers depending on when you got on the train. Supermax Corporation Berhad (SUPM) was the best performer with punters getting in at RM1-RM2 and its now RM17.70 on Friday (17th July 2020). This is also after the sector correcting up to 10%. The price is now higher than before the correction. When you compare that to the previous Research Note by the same company on June 23rd 2020, the number has changed significantly. Remember that we are talking about a one month difference. Hartalega Holdings added USD4B to its market capitalisation, and Top Glove Corporation has added nearly USD5B to its value. Where do we think this demand is coming from? It is obvious that COVID-19 is a major cause of this run, aided by the global uncertainty of when this will come to an end. There is a school of thought that this will become a virus that the world has to live with for a long time. If this is the case, Figure 5 below will not end the way it is drawn. Year-on-year growth of 10% for the next three years may actually be severely underestimated. As you can see in Figure 5, the previous virus incidents created spikes but they were followed with a decline in growth however, the general curve is one that is rising. When you look at what happened in the past with SARS, MERS, H1N1 and EBOLA, the world did not stop. The world did not stop in unison with any veracity. The next three-year projection in Figure 5 is theoretical in nature hence if you look at what the virus is doing around the world, one would have to re-evaluate the potential growth of these companies. Robustness of the Sector In the week beginning 13th July 2020, the heavyweights of the glove industry in Malaysia took hiding of 5% to 8%. A total of USD2B was wiped out collectively. This would be a big number except that these giants of glove-making have made 100s of percentage growth and significantly more billions in growth. Companies like Supermax have not only recovered but also increased their share price from the previous high. Whatever the sceptics may want to say, investors are voting with their money and supporting these companies every discount they get. Even Top Glove, who had a detention notice from the US Customs at the end of the week, could do no wrong. Time will tell how Top Glove gets over this bump on the road but what is wrong for Top Glove will only mean a supply shortage. And a shortage in supply will be great news for the rest of the sector. For those that understand the concept of inelastic demand, this sector is the king of that economic term. Buyers of gloves are telling me that they are paying 50% deposits and every new order is being met with a new higher price. Who would not want a business like this? Secret Component of the Glove Sector Nitrile gloves which are the higher value of the gloves are made from synthetic materials. No need for rubber trees. The main component is Nitrile Butadiene Rubber (NBR). NBR is a copolymer. A copolymer is a polymer that is made from several species of monomer. NBR is made by a process of copolymerization which binds butadiene and acrylonitrile. Acrylonitrile enhances the chemical resistance, while butadiene creates flexibility and tear resistance of nitrile gloves. Looking at Figure 6, I believe that the glove makers are enjoying a healthy margin. I read an article that the price of NBR was supposed to go up in 2019. As you can see, that was not the case and the combination of a steep decline in raw material cost and a rising selling price is a recipe for many happy investors. The greatest asset these nitrile glove manufacturers have is that their raw materials are synthetic. Hence, that means they are grown in a "lab" and there is little motivation to be costly, at this stage anyway. Is this a COVID-19 boom story? There is no doubt that the onset of COVID-19 has been a catalyst. However, the "rubber gloves" industry has been doing well for a long time. Many investors forget that the use of gloves has been increasing and not just in the medical sector. The increasing number of industries using gloves have been increasing as well. It is also noted that the use of PPE (Personal Protective Equipment) has been increasing as well, especially in the use of masks. What is interesting in all this rush for better hygiene is that the average person in the ASX (Australian Stock Exchange) does not even know which company is getting rewarded for the market demand. Most investors don't even know how to get a part of this journey. When you look at the share price charts in Figure 1, there is no doubt that the magnitude of COVID-19 is a major catalyst for the demand. What punters will need to decide is how long is this "New World" going to be finished. Will this be a permanent New World Order? If so, will the demand for PPEs such as gloves be ongoing? Conclusion For Malaysian investors, the glove-making industry is well known. Malaysian companies have been in this industry for a very long time. My understanding of this industry, by comparison, is still very fresh. However, looking at numerous research reports and talking to industry experts over the last few months have definitely opened my eyes and ears to what makes this sector click. When I looked over the charts in Figure 1, I was amazed and disturbed that there has been so much growth in such a short time. The word "Bubble" comes to mind. This is even more enhanced when I looked at the charts closer at the previous bullish trends over the last eight years. Figure 7 and Figure 8 show this journey and you can see the ups and downs over time and then the high lift in May this year. This period is not related to SARS nor H1N1. The sharp drop looks like it was dividend paid. The Financial Report dated March 2014 seems to indicate that its dividend paid. If this geologist has read the report correctly, this makes for interesting thoughts. The two charts showing a run and paying dividends has put my fears aside about the "Bubble". This was all during so-called "normal" trading situations. The COVID situation has stopped the world and this is by no means a "normal" situation. Hence the large rise could be argued to be "normal". What will power this further will be dependent on how long this "New World Order" takes to settle. In my opinion, I believe that the world we live in from here onwards will look nothing like what was pre-COVID. COVID-19 and the potential next COVID-19 will mean that the expectancy of hygiene will be reflected in the increase and sustained use of basic PPE. We are not going to walk around in "sperm suits" but I think the wider use, and the wide common availability of masks and gloves will be here to stay. As for glove manufacturers, the continued money-making habits are not going away anytime soon. 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. www.samso.com.au 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

Another Samso Insight for the Metals and Mining sector Here's what I learnt from Rick Rule on what drives rapid market reaction and finding those Warren Buffet moments. Is this market sustainable or is it a bubble waiting to explode? Read on to find those golden nuggets. Was 1987 the mother of all crashes? In my nearly 30 years in the mineral resource industry, I have never seen or participated in a rush like the last five months. Prior to the stock market crash of 1987 when I was sitting in the Reid Library (University of Western Australia) counting what percentage of the Porsche 911 I had, I thought this was the easiest thing. Investing in equities was simple. The crash came and that car was no longer in the picture. Just as well it was in theory. As it turns out, for me, that crash would turn out to be one of many "crashes" for me to experience over the last three decades. As a geologist, there would be even more ups and downs. If we had thought that the 1987 crash was a mother of all crashes, the chart below will tell a different story. The 2008 drop would have to be the biggest and that was due to naughty bankers. Rightfully too as they are the masterminds of the world financial system. The recovery was pretty fast for the bigger companies. For the rest of the small-cap sector, and the mineral resources sector, it was literally being dragged through the desert and then the thorny bushes and then through the salt fields. And when we resurfaced, we found that the water source was not working and those that worked were leaking. For those people who were in the corporate sector, raising money was a hard slog. I remember listing my company in 2009 and then wondering how we were going to raise more money in the future. Equity markets - 2020 Today, August 2020, for me, in terms of investing in shares this is a surreal feeling of Deja Vu for me. I have seen stocks take off from $0.005 to $0.072 on not much news and activity. The company has not announced anything so how is one to make an informed decision. This is not to say that the company is bad, it is what the market, in general, has been doing since that faithful last week in March. The company I am referring to is, of course, Kairos Minerals Limited (ASX: KAI). The Pilbara has this history of sparking a rush lately with the Conglomerate Gold rush in late 2017 and now what I call the Hemi Goldrush. The Hemi Goldrush is all about the discovery of the Hemi gold deposit by De Grey Mining Limited (ASX: DEG). De Grey made an announcement on 17 December 2019 and it was on for the young and old. Anyone that had something that was close by and had some essence of similarity would attract the attention of eager punters. You would have thought that was the case but, punters were still few and far between. As you can see the share price of Kairos was pretty much underwater until that last week of March The share price for De Grey did not really start to move until February and took off around the same time as the whole market in the last week of March 2020. Hemi was touted as the next gold mine in the Pilbara and that may still be the case. It was a brand new discovery that made De Grey the darling of the market. Not too long before the discovery, when the company was trying to raise money, they were being shunned and how fortunes favour the brave. On another chapter, Calidus Resources Limited (ASX: CAI) which was completing a Feasibility Study on its Warrawoona Gold Project seemed to be on hiatus. Everyone was waiting for the completion of the study. Hence this meant that they were not attracting too many suitors but again, sprang to life on the last week of March. I am starting to feel that there is something different about this market. The market factors were looking different and investors are doing things differently. Rapid Market Reaction Uncertainty crept in and the wonderful four-letter word FEAR was driving the price of gold up. As the gold price started to move up and the reality of COVID became clear, for some reason, the market went into overdrive. Companies that had just an inkling of money being raised, potential projects being acquired was driving share prices in multiples of 10x and 20x. Everything was on the move. Investment decisions were being made not on technical merit but that fact the stock was going to "fly". When I looked at some of these projects on its technical merit, I was puzzled at what was so good and why on earth would anyone want to put money in them. It became clear that the market was no longer reacting to substance but rather on the power of a driving market. There were conversations about money being raised everywhere. There are too many examples to list and too many names to mention that were influencing the rising sentiment. During this time, I had a couple of conversations with Rick Rule and we had a couple of Coffee with Samso to talk some sense of this market. Rick Rule is the Senior Managing Director of Sprott Inc. and the President & CEO of Sprott US Holdings. Check out these episodes of Coffee with Samso with Rick Rule Gold, Equities, Sprott Management and Australian Gold Exploration (Not the best of recording) Markets and Commodities with Rick Rule Rick shares some great points and the one that sticks to my mind are the following: People buy GOLD when they FEAR They buy Silver when they are GREEDY. If the price of gold is at a level that is considered more than a demand vs Supply vs Insurance, there is something drastically wrong in our world. In the beginning, Invest first and Speculate later. I have taken on board these comments and I am looking at this market and thinking that one should now start to Invest and Speculate later. All the first three statements are now in play. This is not to say that the market is about to blow up, but rather to say that it is time to look at the substance rather than the speculative "plays". What is Substance? Let us look at some of the ones that are pretty obvious in the market now. One would ask the obvious question. Have they peaked? Is the gold price going to come back? Are we going to see a major pullback? The answer to this question is simple. DYOR (Do Your Own Research) and don't let FOMO (Fear Of Missing Out) drive your thinking. I would look for near producers that are undervalued and have lots of upside for growth. I agree that there are very little left in this category but I have two that I feel will do well (Hint: Don't stop reading now :-)...). If you look hard enough, you will find them. Warren Buffet finds them so you can as well. As he says, he only needs to find one or two a year and that will do him well. When he finds them, he goes in big. After many years of "speculating", I am now a practitioner of this method. This is a sign of old age and preparing for a slower pace of life :-) I am now in the school of "trying" to find those Warren Buffet moments and then backing the truck into it. There are many opportunities to "punt" but there are only one or two that you will "invest". Which Commodity? In terms of Gold, I think that the government stimulus which is happening all over the world now will keep gold price buoyant and most likely go up depending on how COVID plays out. Remember that prior to COVID, the inflationary issues associated with printing too much money was already rearing it head out of the pack. As for the base metals, I think all major and minor economies are just entering the next phase of rebuilding and so base metals will attract strong demand. I believe that copper will be the star of this batch. Dr. Copper is never wrong! There is the transition to EV (Electric Vehicles) and Renewable Energy, so the likes of Nickel, Lithium, Cobalt (?), REE and Uranium will be in strong demand. I just had an interesting conversation with an associate who is heavily into the trading of Spodumane (Li). He has some good reasons that point to a Lithium recovery. Hard rock lithium recovery. What do I like? I like Blackstone Minerals Limited (ASX: BSX) because they have a very good project in Vietnam. This is a mine waiting to happen. This is a mine within the market for Nickel Sulphide. This is a mine with a great partner in EcoPro. So what is there not to like? My only regret is that I had to sell my holdings way too early. Looking at Figure 6, I am sure they are going to be a shining nickel company. Let us hope management still remembers how to spell Samso. I have been a great sideline supporter of this project from late last year. I am pretty sure the share price was around $0.15. Currently sitting over $0.40 is a true testament to the hard work from the management of the company. One that I have a holding in and I am happy shareholder is Hot Chili Limited (ASX: HCH). Again, from my DYOR article on porphyry deposit in Chile - Copper Porphyry Districts - Chile & Associates - I have learnt that this is well managed and is a giant waiting to come out of the woods. There have been a couple of Coffee with Samso with Christian Easterday and I remember our discussion was on how the public never really understood the potential of the adjacent porphyries in El Fuego. If you watch the Coffee with Samso and the Rooster Talk I have done with Christian, you will slowly understand that this is one of those Warren Buffet moments. Even at the $0.039, the market capitalisation is only AUD77M. Go figure that. Conversations with Christian Easterday Coffee With Samso A Giant Copper - Gold Porphyry Story, Chile Tier-1 Copper-Gold Porphyry Deposits Rooster Talk Unveiling the Giant Copper Deposit - Hot Chili Limited (ASX: HCH) The beauty of HCH is that the market is still unaware of the value creation. The persistence of management to keep delivering milestones is commendable. it is not easy to stick to this task for ten years and work through some tough times. Conclusion I don't think this market is going to burst. However, I do feel that the small-cap market is now so speculative, the safest way is to look for value. I know this last statement goes against everything that a small-cap "investor" would do. My thoughts are based on the fact that this market is the best I have seen. In fact, if you look around the world, almost every exchange that I have some insight to is up and is as active as the ASX. The advice from Rick Rule is resonating in my mind as I write this. Invest first and speculate later. Gold is rising so FEAR is in the air. Silver is rising so GREED is near. The best way for me to create some form of insurance is to find those Warren Buffet moments. 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 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 Insight Episode 99: The world of marketing has been changing since the onset of the internet. Digital marketing is now at its most mature where it has evolved into a precise targeting tool. There are many misconceptions that digital marketing is all about posting pretty pictures and random phrases on social media platforms. The word engagement is often used too loosely to mean someone is listening to or watching your marketing. In this episode of Samso Insights, we are talking to Ali Raza from Invicta Agency. Ali has a wealth of experience in this field and we have been talking about engagement, targeting of engagement and what digital marketing can do in terms of minimising the cost of marketing. Today's Samso Insights is about reaching out to connect with customers and providing the story of business. The translation and the projection of messaging is really important as the subtle points often create the most impact. In the world of mineral exploration companies in the Australian Stock Exchange (ASX), there is a lack of understanding of the need to have a brand. The aspect of branding is the key to every business that is out in the marketplace. The act of branding is also the cornerstone of every human being. We brand and market ourselves individually every day to our families and friends. In some ways, branding is the end result of a digital marketing phase. Marketing in its traditional form is no different to today's digital marketing conversations. The formula is the same but the way we do it is different. I remember a video I watched a decade ago where the narrative was that the hunter who goes into the forest to hunt for customers comes out empty handed. He meets a guy and asks, "Why are there no customers in the forest?" The reply was, "The customers are now all around water holes called Google, LinkedIn, Twitter...etc." As Ali Raza points out, the digital marketing space is all about Recent, Frequent and Relevant. It is this change in view points that is key in getting noticed in the marketplace today in 2022. Chapters: 00:00 Start 00:20 Introduction 01:13 Ali talks about Invicta. 03:48 Is there a platform that works for a specific industry? 10:55 The types of content. 11:59 Fitting the content into the marketing strategy. 13:37 How important is branding? 16:55 A sector where branding is less relevant. 20:27 How important is viewership? 25:46 The concept of retargeting. 31:03 Does subtleness work? 34:31 Building the strategies. 48:44 Narrating the value of the product. 51:17 The evolvement of digital marketing. 54:56 Invicta moving forward. 59:27 Massive untapped opportunities. 1:00:26 Conclusion PODCAST Digital Marketing can be an intriguing and exciting area to explore, and here´s more to get you interested. I interviewed Veronica Lind, Business and Marketing Strategist of Vermilion Pinstripes and CEO of Brilliant-Online about her concept of Modern Marketing. She shares Vermilion Pinstripes´ mission to make businesses happy and what Branding for ASX Companies looks like. It´s all about helping brands build business confidence and refining their relationships with customers and business peers, through marketing and communications technology. About Ali Raza CEO & Director Ali Raza is a digital growth expert and the founder and CEO at Invicta Agency. He’s advised a host of companies, over the last 15 years, on designing marketing and sales systems to reach new audiences, scale revenue and drive brand growth. About Invicta Agency Invicta Agency is a digital growth firm that designs demand generation and sales enablement strategies for growth-driven companies. The team at Invicta leverages a range of digital platforms, design and development, to enable organisations to scale their revenue, brand and audiences. 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. 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 ASX stories are also through the Brilliant-Online channels. Subscribe to Brilliant Investments.

Samso Insights Episode 102 The Story So Far In recent months, Rare Earth Elements (REE) has taken a turn from a forgotten story into one where it is taking some shine away from Lithium. When I first looked into the world of REE, there was only a handful of companies on the Australian Stock Exchange (ASX) with REE. The Rare Earth story has always been dominated by China. Investors in this sector know that all things REE flow from China and they control the market. In the post-COVID era, the changing face of geopolitics appears to be altering the narrative. There is now a concerted effort by Western governments to support and encourage the REE sector. The comments that I received prior to COVID was that the price differentiation from Chinese sources were creating a large void in the competition. I am not sure if the movement is creating a true or false path to an economically viable REE market. Time will tell if all the talk will create a true sustainable marketplace for REE outside of China. What are Rare Earth Elements? Investors who look at the REE story must have a good understanding of the type of elements that are "abundant" in grade and volume. Once you have a good understanding of that, you then need to understand if there are metallurgical issues. Personally, I am still trying to do my own research. The rare earth elements (REE) are defined by the International Union of Pure and Applied Chemistry (IUPAC) as the group of 17 elements that include scandium, yttrium and the 15 lanthanoid elements (also called lanthanides) lanthanum through to lutetium (Table 1). The name “rare earth” was given by early chemists in reference to the difficulty in separation of the elements from each other (Chakhmouradian and Wall, 2012). For convenience, geologists usually group REE into the light REE (La-Sm, LREE) and heavy REE (Eu-Lu, Y, HREE). Sometimes, as is often done by chemists, it is useful to add a mid REE category, for Sm-Dy. Didymium, originally a mixture of Nd and Pr, neighbouring elements that are particularly difficult to separate from each other, is a term used in commercial applications to refer to the LREE, La, Nd, Pr after separation of Ce. (source: Rare Earth Elements : Frances Wall, in Encyclopedia of Geology (Second Edition), 2021) There is a firm understanding that Neodymium (Nd) and Praseodymium (Pr) are the two sexiest elements of the list. These are the ones that are most widely sought after when we look at an REE project. They are part of the permanent magnet story. Table 1 show the suite of REE and their uses. One can see that there are multiple uses and I challenge the average punter to tell me what grade or volume is good. Table 1: Rare earth element (REE) properties and uses. Cation radius values from Krishnamurthy and Gupta (2015). Crustal abundance from Taylor and McLennan (1985), Sc from webelements.com. Uses from www.rsc.org/periodic-table. In Table 1, you will also see the complexity that lies in just reading the numbers that companies put out in their announcement. I am no expert in this sector and the complicated nature of REE makes it hard to have an educated opinion on this topic. I am still struggling to get a firm understanding of what is viable as an economic story, especially now with the flow of ionic REE clays. The Old Guards in the REE sector When I first started to look into this sector, I was looking at Arafura Resources Limited (ASX: ARU) and Northern Minerals Limited (ASX: NTU). I think Lynas Corporation (ASX: LYC) was around, however, I am not that sure if I had known about it. Hastings Technology Metals Limited (ASX: HAS) was just a minnow of what it is today but I am also thinking that this was not a household name at that stage. Let's look at some of the older guards of this sector. These companies have been around for a long time and they enjoyed the rise of the market around 2010-2011. The bear market for the REE has seen some hardships and one company, Lynas, has risen above all players with some innovative strategies and some very hard work. As you can see in Figure 1, Northern Minerals has had a long history but the share price journey has not been kind. This may be due to the 5B shares issued and a market that has not ben kind to the shareholders. Figure 1: The share price chart for Northern Minerals Limited since 2006. (source: www.commsec.com.au) In the case of Arafura, they have been seeing a fair bit of attention lately which is pretty much in line with the market sentiment. ARU has a market capitalisation of 525.9M (28 September 2022) with about 1.8B shares issued. Figure 2: The share price chart for Arafura Resources Limited since 2006. (source: www.commsec.com.au) Lynas, which in my opinion is the only real REE player outside China, is the stand out performer. They are the only producer, so you would expect them to be the best performing company in this sector. Lynas has a market capitalisation of AUD$6.634B with just over 905M shares issued. As you can see, there is a big gap between these three REE players. Figure 3: The historical share price chart for Lynas Corporation Limited. (source: www.commsec.com.au) The up and coming player is Hastings Technology Metals Limited (ASX: HAS). Hastings has had a long, hard road to get to where they are now. They have a market cap of AUD432M with 116M shares issued. If I am not mistaken, there was a consolidation of shares which may have happened at the right time. Hastings is one of the beneficiaries of the recent rush into the REE sector. Figure 4: The historical share price chart for Hastings Technology Metals Limited. (source: www.commsec.com.au) Ionic Clays Recently, the REE market is being introduced to REE in clays. I have learnt about these clays and as the definition described below mentions, they are abundant in China and Myanmar. The grades are always lower than the hard rock versions (Northern Minerals and Arafura) but they are cheaper and easier to extract. In China and Myanmar, traditionally, the methods used to extract the REE are not the most environmentally friendly. The miners would not be winning any ESG (Environmental, Social, and Governance ) awards. According to a definition from Science Direct, Ion adsorption-type REE deposits (also called ion adsorption clays or weathered crust elution deposits) consist of REE adsorbed to the surface of the clay minerals, kaolinite or halloysite (Sanematsu and Watanabe, 2016). They are the world's main source of HREE and mined almost exclusively in southern China (and in Myanmar). The key ingredients are most often an underlying granite, although deposits also form on alkaline rocks (Estrade et al., 2019), and the existence, prior to weathering, of soluble REE-bearing minerals in the granite, such as REE fluorcarbonates, eudialyte and allanite. Formation of clays, by alteration of feldspar in the weathering profile, releases REE from the mineral into the weathering profile such that they can be adsorbed onto the surface of the clays (Fig. 5). Weathering should not be too intense so that breakdown of the clay or dissolution of the REE do not occur. Figure 5: A simplified profile through an ion adsorption-type REE deposit. (source: Science Direct) Modified after Sanematsu K and Watanabe Y (2016) Characteristics and genesis of ion adsorption-type rare earth element deposits. Reviews in Economic Geology 18: 55–79. Which Companies are into Ionic Clays? As I mentioned earlier, there is an increasing trend of companies coming out with REE occurrences and they are getting a lot of attention. This trend seems to have taken some of the limelight that Lithium had been basking in for the last few months. Companies are re-assaying their drill core and drill spoils to check for REE. It's kind of like the early stage of the lithium boom when gold companies were re-analysing their core for lithium as they learnt that those boring pegmatites were carrying a mineral call spodumene which is a lithium bearing mineral. Previous companies that have been on the Samso platform are doing just that with Indiana Resources Limited (ASX: IDA) and Venture Minerals Limited (ASX: VMS). Their respective announcements in relation to the REE story are listed below. What is most interesting about the recent rush of REE Ionic Clay stories is that I am starting to see who may have the source and who may be just getting some "hits". Indiana Resources Limited: FINAL ASSAYS CONFIRM SIGNIFICANT REE DISCOVERY CENTRAL GAWLER CRATON Venture Minerals Limited: Venture unearths REE mineralisation immediately adjacent to Tin Zones at Mount Lindsay As I learn about this topic, I am now looking at Venture Minerals closely as the recent discovery could mean positive credits to their tin-tungsten project. I cannot speak for other projects as I don't have intimate knowledge. What I can say is that if Venture Minerals can create more intersections of REE in the project, then this will make a very interesting mix for their aspiration to mine Mt Lindsay. In Figure 6, which I have taken from the Venture Minerals announcement, you can see that the REE are being found within the ore body. Whether this is a good thing or not, I will need to have a chat with Andrew Radonjic, Managing Director of Venture Minerals Limited to find out. Figure 6: Reward geology map with La + Ce soil anomalies, drill hole location and gravel sample locations. (Source: Venture Minerals Limited) Lessons Learnt So Far In my need to get some more of these stories onto the Samso platform, I have only been successful in getting Mount Ridley Mines Limited (ASX: MRD) to talk about their Mount Ridley Project in Episode 150 entitled "Mount Ridley Mines Limited (ASX:MRD) - A Rare Earth Story." What came out of the Coffee with Samso episode was that everyone is still learning about what they have, how much, what it means as an asset and what they need to do to monetise this asset. What is very obvious to me now is that we need to think of the ionic clay story like an alluvial gold story. The parts that make any alluvial story tick will most likely be the same for an ionic clay project. In the conversation with Guy Le Page in the Mount Ridley story, he mentions this very point. There are still lessons that are required to be learnt in how to treat the REE within the clays. What will make everything work is the presence of good infrastructure. This is very important. Fortunately for MRD and VMS, that they do have. In VMS, the REE could be the missing link to the Mount Lindsay project. The sweet sauce that is required to make the whole Tin-Tungsten project work could well be the presence of REE. The Problem with REE Ionic Clays According to Samso The issue with REE is that they are not RARE. The only people who are experts and know what they are dealing with are the Chinese. These are the facts of the REE industry. The extraction of REE from the clays in principal is very simple. The science to extract the REE from the clays is where the problem begins. What I have learnt and appear to understand is that the measurement of a good Ionic Clay REE deposit is not in the grade nor the volume. It is the proficiency of extracting the REE out of the clay. I cannot go into details of the process because I don't know enough. I try to glean what I can from conversations with people in the industry and it all made sense when we were talking. I am sure in time, there will be enough understanding for the average investors who are putting their money into companies. Check out this article: A Short Review on REE Recovery from Ion-Adsorption Clays. Conclusions This Samso Insight is a brief commentary on my thoughts about the current energised REE sector within the ASX. I don't have enough information to fully understand what is a good project nor what is a bad project. There is no doubt that there are REE stories coming out constantly, and investors who are looking at these announcements must surely be as confused as I am. What I have learnt is that the extraction is possible and that has been proven by the Chinese models. There is no secret in this part of the conversation. As we know in any mining operation, there are many parts to consider and these parts can move so the variables to consider are important. As I mentioned earlier, in the conversation with Guy Le Page, there are still lessons to learn in terms of the treatment of the ore. There are ESG factors that will be a barrier which companies must consider. I had a revelation as I was researching this Insight. REE mining could be a credit to a complementary mining process. Like the potential of Red Dirt Metals Limited (ASX: RDT) having a known gold resource alongside their lithium project. The credit from the gold mining will significantly reduce the cost of mining. The credit created will ultimately allow the extraction of the lithium ore at a lower cost. When I saw the announcement that came from Venture Minerals, my immediate thought was that if they can monetise the REE, this could definitely create a positive credit flow into their flow charts. What may have been a marginal mining project may well suddenly become very profitable. For Venture Minerals who are already in the Critical Mineral space, this may enhance their stature in the future of mining with a greener environment and be at the forefront of the business of Green Energy. 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. 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 ASX stories are also through the Brilliant-Online channels. Subscribe to Brilliant Investments.

Liontown Resources Limited (ASX: LTR) had a spectacular result from its latest drilling. On the 20th May 2019, the company released the headline numbers (See image below). I am always a sucker for significant intercepts. As I have always said, there is nothing better than a great long length of intercept. You can see the market expectation with the stock rising from 2c territory to nearly 10c. Corporate Information Market Capitalisation: 31M Outstanding Shares: 1.1B Top Twenty Shareholding: Approx. 50% (Tim Goyder: 18%) From the share price chart below, you can see the market liked the results. I agree that it is still too early to say if this price rise is going to be supported. I think in this market, it is hard to say. Buyers are scattered, and the majority of the buyers are punters who are not the “sticky” money. The fear in the market is also not encouraging punters to stick around. The uncertainty in the lithium market is another factor. A recent chat with industry people highlighted that there is just no retail trade. The T+2 system in the market is not allowing “real punters” to do their thing, and that is to “gamble” on these kinds of situations. What is the Fuss? The fuss is all about this nice diagram you see below which is part of the Kathleen Valley Lithium project. The announcement of a 90m of intercept with grades of 1.3% Li2O has excited the market. The project has a current “resource estimate”. The results were in line with the ongoing story, and I think this shows that the Kathleen Valley project has some good legs. Whether it turns out to be a profitable mine is another story. The cross sections show where the intercepts were and how they appear with the other pegmatites. The drill plan location plan (Figure 1) does give an impressive look at the potential of the area. The ongoing issue for mineral resource deposits such as this is that the real possibility is not observable yet. Many punters assume the best, but for those trying to prove economic viability, there is still a long way to go. You can see in Figure 2 the orientation of the pegmatites. As promising as the story is being told, I am cautious as to how this story will end. From an exploration point of view, there is a good reason for excitement. The grades are looking consistent and without knowing other aspects of the mineralogy, it is hard to have any firm conclusion on the outlook. Notwithstanding all the doubts, this is indeed an exciting time for the company and the story. Currently, there is an excellent strike length of 600m, which I would assume that the company will want to extend. The intercept is deep, but it does give a level of optimism that there is endowedment of the system in the region. Some of these pegmatites can be very wide and be reasonably consistent. I am not sure if the grade is sufficient to make everything work. I remember that the figure needs to be higher. As I have always mentioned in my previous articles, it is more about the end size than a spectacular grade. All the deposits, irrespective of the commodity is about the mining grade and the mining tonnage, which then will be determined by the AISC (All-In Sustaining Costs). As you can see in Figure 2, the pegmatite layers are pretty deep down. I remember my Galaxy days when I was freezing in the paddocks logging the drill chips. They were very shallow, and at that time, it was considered deep. If I am not mistaken, they were no more than 20m+ below but were stacked with waste in between. I am not saying that this is not going to happen as a mining proposition, but I think it is worth a thought. Liontown also has the Buldania project, and that looks interesting too. Beautiful thick intercepts that are carrying some grade. However, I think, for now, Kathleen Valley is giving some needed profile to this lithium sector. Always good to see people have exploration success and making our small-cap exploration sector buoyant and full of hope. That is what drives this industry, and job creation is always a welcome result. 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. www.samso.com.au 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 last three months feels like an episode of The Twilight Zone. Who would have imagined the world as we had known would come to a complete halt? Financially, calling it anything but a catastrophic Armageddon would be an understatement. The stock market went on a spin downwards, and the ride back was just as mind-blowing. source: Photo by Jamie Street on Unsplash Coming out of the downturn, I was looking for stocks that would be resilient to the volatility and have a robust business that would take on the "new world"—looking for that "Buffett" effect. Gold related stocks and investments were a given but what followed was something that I had not counted on. As I am a resource-laden investor, things started to look good for resource-related stocks. Most of the market recovered in the middle of March and had the distinctive "V" recovery. Almost every company that was not directly COVID-affected started to improve and companies releasing results were rewarded handsomely. Capital markets were alive and transactions were getting closed left, right and centre. The Discovery I started to seek stocks that would balance the portfolio. First on my list was a prominent list of hygiene and COVID friendly stocks. In 2015, I was in a meeting with some associates in Kuala Lumpur, Malaysia, and I remembered that they were talking about the "rubber glove" industry. They commented that the KLSE (Kuala Lumpur Stock Exchange) was all about these companies. Stocks such as Top Glove (MK: TOPG), Supermax (MK: SUCB), Kossan (MK: KRI) were riding high. It was here that my little understanding of the sector was born. I have to say that it was not until the last six months, where I gained a better understanding of the industry. When COVID happened, most people started to look into hand sanitiser, masks, plastic screens and gloves. What is hidden behind COVID is the fact that many of the hype will bring a saturation of the market. During the lockdown stages, one could not get hand sanitiser, gloves, disinfectants ( which were only good for bacteria and not viruses) or masks. You could not even get rubbing alcohol to make hand sanitiser at home. Now, they are being sold everywhere and at a fraction of the price. The glove makers were making a good profit even before COVID. Since then, the market has been growing at near 10% per year. It was growing at 6% the last time I saw reports in 2015. As you can see in the graph below, this is Year on Year growth and spiking whenever one of these viruses appears. Remember, this is growth. A recent May 12, 2020 research report (Maybank IB Research) showed that Top Glove (MK: TOPG) have sales secured until April 2021. There have been several reports that the manufacturers are all booked until the end of 2021. Producers in Vietnam are indicating similar demands. Due to the strength of the market, the ASPs ( Average Selling Price) can change up to 1-2 months before delivery. Also, there have been 3-5% of total quarterly sales where the ASPs were substantially higher than the market ASPs. The report that was published by Maybank IB Research quoted the following, We raise our FY20-22E EPS by 54%/112%/5%, projecting for its EPS to increase by 128%/35% in FY20-21E and to fall 50% in FY22E. Those figures are mesmerising, and this company has a present market capitalisation of slightly less than AUD7B. Top Glove is the worlds largest rubber glove manufacturer by volume, with 70 billion pieces per annum. When Australian consumers go shopping these days, there is no shortage of face mask and hand sanitiser but if you look closely, gloves are slowly beginning to disappear from shelves. When one takes stock of what we use more, even decades ago, the use of gloves is higher than and other PPE equipment. In an average "inspection", one does not change a "sperm suit" or masks after every inspection. What you do change after every review is gloves. If you go and take a blood sample, look at how many times the nurse/technician change gloves. In Australia, we are all facing a great outcome in regards to COVID, except for our poor Victorian counterparts, there is a sense of complacency as we feel that COVID is under control. The average person thinks that we have beaten this issue, but at the same time, there is the fear of multiple potential waves. When I see the glove industry, I don't think the business is this "pandemic" as you can see in the chart above. Rubber Gloves "ain't" Rubber Gloves The fascinating part about rubber gloves is that they are not all the same. Like every industry, the deeper you dig the more complicated the details become and hence, this where we need to explain. Like the old saying, the devil is in the details. What is Nitrile? (source: www.glovecompany.com.au) Nitrile is a synthetic rubber compound used as a disposable glove material. Nitrile has been around for a while, but only recently it's become more affordable, which explains why it's gaining popularity throughout medical, food and cleaning industries. Nitrile has a higher puncture resistance than any other glove material. Nitrile also has a better chemical resistance than Latex or Vinyl gloves. What allows Nitrile gloves to become a standard medical supply for hospitals and emergency personnel is their hypoallergenic attribute. Nitrile gloves are powder-free and hence are more comfortable to remove from the box. They are incredibly durable and puncture-resistant. They can also withstand exposure to oils, solvents, and chemicals which typically degrades regular latex gloves. What is Latex? (source: www.glovecompany.com.au) Latex comes directly from rubber trees. Latex gloves are the most commonly used disposable gloves because they have been the only durable disposable glove material option on the market. However, now many hospitals and clinics have begun replacing their latex gloves with nitrile gloves. Nitrile gloves are where all the action is and will be. They are the "EV" of the glove industry. As you can see from the brief above, the market is heading to the Nitrile product. The durability properties and its low allergy reaction make this an excellent product for use. One can visualise how advantageous this product is over latex. Nitrile gloves are of higher value and they are sold to the higher market, such as Europe and the US. Ultimately, it means more profits to the manufacturer. According to a report by a research firm (Acumen Research and Consulting), the global nitrile butadiene rubber (NBR) latex market is expected to grow at a CAGR (Compound Annual Growth Rate) of around 15.4 % over the forecast period 2019 to 2026 and reach the market value of over US$ 2,860.1 million by 2026. Rubber Gloves Market? Today, when we think of gloves, invariably, our minds think of COVID. No matter if you are thinking of Nitrile or Latex, COVID is how we measure this market. There are no arguments that COVID has and will play a significant part, but one must remember that this is bigger than any PANDEMIC. China is a giant in its own right and is a dominant player, but any increase in supply will be absorbed into the domestic demand. That leaves the rest of the world. A recent report by CGSCIMB quoted the following, 7.7bn (9.9% of total incoming Cina nitrile glove capacity) will be ready by 4Q CY20, assuming there are no supply disruptions (Potential second wave of COVID in China). Any current producers will have no problem competing in a sector that is really in an inelastic global glove demand. As you can see below, China is a relatively small player in this industry. The major producers in Malaysia dominate the local industry. Interestingly, Chinese glove manufacturers are not Nitrile dominated. The Chinese domestic use per capita is small (6) in comparison to the US (150) and Europe (100). Hence the demand increase domestically will be eating into andy potential Chines supply increase. There is also the diversification of these "essential manufacturing" into a nationalistic position and that will curtail any potential competition from China. In addition, the cost of manufacturing in China is also higher than the Malaysian producers which are not surprising. For several years, the rising cost of manufacturing in China has seen many industries move into Indochina to maintain profit margins. Another factor that is helping these Malaysian producers is the material cost. The Nitrile gloves are made from NBR (Nitrile Butadiene Rubber) and as you can see the graph below, the price has been declining. VIP Gloves Limited (ASX: VIP) VIP Gloves Ltd, formerly Voltage IP Limited, is engaged in manufacturing of Nitrile gloves. The Company owns KLE Products Sdn. Bhd. (KLE), which is a Malaysian manufacturer of conveyor chain systems and components that service the rubber glove manufacturing industry. KLE manufactures a range of roller conveyor chains and former holder sets according to customer specifications. KLE supplies to various glove manufacturers in Malaysia and overseas with its product set. VIP Glove Sdn. Bhd. is a subsidiary the Company, which is formed as a special purpose vehicle to implement its strategy of expansion into the rubber glove manufacturing industry. It is also focused on the procurement, installation and commissioning of over two glove manufacturing lines. --- Reuters Market Capitalisation: 25.35M Outstanding Shares: 745.66M Top 20 Shareholders: 71.70% (2020, www.commsec.com.au) As far as I can figure it out, VIP was an RTO (Reverse Take Over) in 2015? and they shifted to be a manufacturer of Nitrile gloves soon after the listing on the ASX. From comments observed in forums, I am gathering not much has been formalised till now. Conclusion VIP has a very uninteresting history apart from a period of "action" in April. However, this is one of those exciting stocks that I hear Warren Buffet talks about, that gem in the market that seems to have all the fundamentals in place but is unloved. As a shareholder, I feel that this has fundamentals with inelastic demand, what more could you ask for in a business. The research will show you that there are numerous disgruntled shareholders and a series of unfaltering comments about the motives and actions of the directors. I have read them but a very good friend of mine, Geoff Donahue, gave me two points to remember (he may have given me more, but I can't remember). Firstly, always smell the roses and don't rush around like a headless chook. Secondly, always go into a stock for the story and always leave when that story changes negatively. The rest is just noise. Now VIP gives me exposure to the "Glove Industry" and into the Nitrile Glove Industry, and it is an ASX listed stock. Governance is important. It has a great story, the sector has a great story, and its market capitalisation is still reasonable. Those Malaysian companies such as Top Glove are all trading at 20 x Earnings, and my rough estimate on VIP tells me that it is probably trading at significantly less. To me, VIP is a minnow in an ocean of whales. However, the recent capital raising appears to be signs that the company may be starting to move into qualification for the bigger league. Like all of our investments, there is never a guarantee. However, going through the process of trying to understand the fundamentals behind the company story is one that is essential. In closing, when you look at the comparison Malaysian companies, Hartalega Holdings has an annual production of 35.6 billion and Top Glove with 70.1 billion. But their market capitalisation is similar at USD9.5B and USD9.8B respectively. The P/E ratio for CY20F and CY21F are 34.6/40.2 for Hartalega and 19.6/14 for Top Glove. The reason for that stems in that Hartalega (96%) is producing the more profitable (higher value) Nitrile gloves than Top Glove (47%). Guess what VIP Gloves Limited is producing, Nitrile Gloves at a market capitalisation of just over AUD20M. #healthcare #COVID 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. www.samso.com.au 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 Insight Episode 100: As we progress to a world of clean energy and a No Emission life, the hard path of implementation begins. The hard part of all the conversations about decarbonisation and a perfect world of less carbon, less emission to no carbon and no emission is the implementation of some real world details. In this episode we have Matthew Bowen and Adel van der Walt from Jackson McDonald and Joe Wyder from DMIRS speaking with Tony Goode. Matthew and Adel share with us their experience in a sector which seems to be a world of smoke and mirrors. The average citizen of the world always has an opinion they want to express about the clean world. However, as you take the conversation further, they seem to lack an understanding of how that will work in practice. When we talk about the mining sector, there are so many parameters that need to be considered. Most importantly, we mustn't forget that mining is a business after all, and if there are no profits, then there will be no mining. This discussion is all about how we are going to have clean energy for mining and how all proponents of this industry must work together to have best practice. There are some real working examples of cleaner energy which we discuss in today's Insights, and you can see it in the images below. King Island and Rottnest Island are prime examples of how important hybrid power systems are to the clean energy process. One interesting message that came from this episode is that clean mining will consume more energy. People who want clean mining need to understand that to achieve the clean power world, there is a need for more mining. More clean mining means more energy will be consumed. Source: Hydro Tasmania King Island Renewable Energy Integration Project (link) and Rottnest Island Project (link), 31 August 2022 Make sure you have a good cup of your favorite beverage and tune in to this episode of Samso Insights. As stale as you may think the heading is, as you watch the episode, you will begin to get engrossed with this stimulating concept of implementing the decarbonisation process. Chapters: 00:00 Start 00:20 Introduction 03:05 The state of the clean world status. 07:17 Why do we Decarbonise? 03:18 Changing of mindsets. 14:10 How does the Decarbonisation process look? 15:55 Carbon Consumption - The Business of Mining. 21:41 Clean Mining will consume more power. 22:21 Small Vehicle Fleet on Alternative Fuel. 23:43 NASA testing alternative fuel options. 24:25 Is hydrogen cells for the big trucks? 24:57 The birth of hybrids. 25:32 Difficulties of hydrogen. 26:01 Alternative fuel will determine Mine Design. 27:08 The issue with Lithium ion batteries. 28:06 State Government Hydrogen Committee. 32:02 The coming of the Mineral Revolution. 33:39 The Purchase Agreement. 35:21 DMIRS New Implementation supporting Decarbonisation. 39:29 Resources provided by DMIRS. 40:54 Jackson McDonald contribution to the Power Agreement templates. 43:38 Agreements are made from the miners' perspective. 51:28 The impacts and opportunities for Indigenous communities. 52:36 Challenges of Hybrid vs Conventional power generators. 53:51 Opportunities to help indigenous communities. 54:50 The wealth creation opportunities from the renewable energy space. 57:51 Concluding comments from Matthew Bowen. 01:00:20 Conclusion PODCAST About Adel van der Walt Partner - Jackson McDonald Adel is a senior energy projects and corporate commercial lawyer. She advises on contract preparation, negotiation and interpretation. Her experience spans a wide range of commercial and project documentation in the energy and mining sectors, including project development, corporate structuring and project operational documentation, including service agreements, management agreements, offtake contracts, distribution, marketing and supply contracts. Adel is an experienced transactions lawyer who advises on in and out-bound investments and mergers and acquisitions in the mining and oil and gas sectors. She is a legal due diligence expert and regularly assists companies operating in the mining and oil & gas industries to conduct effective small and large scale due diligence investigations. Adel also advises her clients in respect of a wide range of corporate and regulatory matters. As a leading energy and projects lawyer in our Energy and Regulation team, Adel advises businesses over the entire life cycle of energy projects. Her clients include gas and electricity providers, buyers and sellers, pipeline and network companies, alternative energy companies and energy consumers, including major project and asset owners. Some recent relevant work include assisting a company with the development of a hybrid gas/wind/solar/battery renewable energy power facility and associated construction and power purchase agreements. Prior to 2009, Adel practised in South Africa where she specialised in mining transactions and operational work, and advised clients on transactions and due diligence investigations in respect of projects in South Africa and other parts of Africa. About Matthew Bowen Partner - Jackson McDonald Matthew is a commercial lawyer practicing in energy law, infrastructure access, competition and trade practices law and statutory drafting and interpretation. He advises clients in a range of industries on commercial agreements, energy contracting and statutory compliance. He has helped negotiate and implement large scale and long term contracts, including project implementation under State Agreements and State Development Agreements. Acting for the State government, Matthew has drafted and helped develop statutory and regulatory regimes, including several licensing and third party access regimes in gas and electricity. He is experienced in both government and industry liaison. Matthew’s infrastructure access experience includes advising private and public sector clients regarding third party access to gas pipelines, electricity networks, rail, mining and resource development infrastructure, telecommunication facilities, railways, harbours and water pipelines, and regarding competition law and policy generally. He has advised both asset owners and access seekers. Matthew also advises clients on trade practices matters including misuse of market power, exclusive dealing, price fixing and anti-competitive arrangements. About Joe Wyder Principal Policy Analyst, Energy Industry Development Energy Policy WA Department of Mines, Industry Regulation and Safety 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. 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 ASX stories are also through the Brilliant-Online channels. Subscribe to Brilliant Investments.

Is China still reliable for the iron ore trade? Iron ore is a prevalent commodity in Australia and an important export for our economy. Whether it is their recent real estate crisis in their internal economy or their complicated relationship with Australian mineral exports, what is highly relevant for Australians to consider is: Is China still reliable for iron ore trade? Let's contextualise the story Iron ore demand has plummeted amid China's reduction in steel use, according to ANZ commodities analysts. The pressure on the iron ore industry has even caused several Australian mining groups to shut down operations temporarily. However, the fall in the market is allusive to a much bigger problem regarding the world's biggest iron ore consumer: China. China has made its aim clear; to reduce their pollution output by reducing an association with the steel production and the iron ore industry. The CCP has been open about aiming to keep its emission low by restricting steel output to 1 billion tonnes since 2016. As one of Australia's foremost consumers of iron ore, China's sudden lack of demand has caused dramatic shifts in mineral prices. In a discussion with Samso CEO, geologist and mineral expert Noel Ong, he explains, "The EV (electronic vehicle) revolution needs iron ore. It is not just about Lithium. You cannot make the lithium factory, the lithium processing, etc. without steel". Hence, the goal of lowering pollution output may be noble, but the likelihood of such a rapid decrease in steel production seems unviable. He further explains, "The good news for iron ore is that China is dependent on iron ore. Growth in China will need iron ore." These goals, some claim, were formed considering China will be hosting the upcoming Winter Olympics. Thus, the perception is that China wants to promote their nation as advanced in the global race to decarbonise during a time of great publicity. Yet, others have linked China's actions to a much more complex economic dilemma. Evergrande: the next Global Financial Crisis? This September, it was revealed that China’s Evergrande Group, the nation's most prominent real estate firm, had accrued a massive debt. The crisis quickly established itself as a dangerous catalyst for Beijing's property market, its investors and beyond. After the implementation of some policies in 2020, the real estate sector of China has been cracked down on by governments for their vast amassing of debt, with developer giant Evergrande having racked up over US$300 billion in liabilities. Quickly following Evergrande’s inability to make a scheduled bond payment to international holders, Evergrande was forced to cease trade - causing a reprieve in China's demand for iron ore. The impact of a crisis not even fully formed has seen a significant injury to the Australian iron ore industry. Australia saw AUD $150 billion from exports, 80% of this coming from China in 2020, making even the slightest fall in iron ore value or demand a highly volatile blow to our economy. As a vitally important commodity to the Australian economy, the fate of iron ore (and much more) is now the ball in the court of the potentially collapsing Evergrande. Which it really shouldn't be. For many reasons, some compare the disaster that would follow Evergrande's collapse to another Global Financial Crisis. The iron ore market has been giving investors the run around for months, seeing the price of iron ore soar to US$200 in May, followed by a plummet in September to under US$100. Following the fall, it went public that Evergrande possessed the most immense debt pile in the country. With a debt of over US$360 Billion ranging in the form of bank loans and various borrowings, the second-largest real estate developer in China was exposed to be on the brink of bankruptcy. The global consequences of this concern those with stakes in the iron ore industry and beyond. Evergrande risks leaving property underdeveloped despite 1.5 million people having already paid deposits with potentially nothing to show. Additionally, they are now selling their assets at significant discounts. Currently, Evergrande owes US$669 million in coupon payments by the end of the year and US$7.7 billion in maturing debt due next year. China walks a thin line with recent legislation The real estate giant's aggressive loan taking came back to them when the Chinese government in August of 2020 cracked down on leverage in the real estate industry to evade a financial crisis - ironically, potentially causing a different one (there's an iron pun in here somewhere). The CCP introduced a policy of "three red lines" to govern real estate developers. The policies are designed to police the way investment companies rack up debt. By introducing a metric to measure a company's debt tolerance, violators will face restrictions on how much they can loan and from whom. They force deleveraging to improve the real estate sector, cause credit rating changes and create opportunities for bond investors. China implemented the lines as concern grew for rising debt levels and surging land prices to protect the Chinese real estate. The reasoning behind the three red lines: 1. To lower house prices: China has seen a significant rise in house prices over the last few decades, making property largely unaffordable. 2. To lower land market prices: House prices rise when developers buy and hoard land to bid off later. 3. To funnel money into other economic sectors: China's real estate sector accrues massive capital. By moving funds away from real estate, the instability of the real estate sector (which is prone to fluctuation) is not as much of a liability. When the rest of the economy isn’t so dependent on one area, it is therefore not as vulnerable. Overall, these policies have obviously been implemented to protect the real estate sector. This industry is one of China's most important aspects of the economy. The chain of reaction between real estate and other sectors of China is strongly linked, and therefore needs to be protected to be sustained. Despite the reasoning behind these rules, their implementation had consequences similar to those they have been set up to prevent. Evergrande immediately violated all three red lines and is now unable to engage in any further loans. The stagnancy of this cash flow has tremendous implications on other companies and the economy's ability to execute a trade. China cut off the lifeline for Evergrande, but will they be able to pick up the pieces that fall in its wake? For these reasons, many are making some alarming comparisons between Evergrande and the Lehman Brothers. Despite this extreme comparison, especially considering the safeguards that have been out in place since 2008, the uncertainty of Evergrande's fate is anxiety-inducing for those that would be affected by the shockwave of its possible collapse. The fate of Evergrande is mainly dependent on the Chinese government's actions which will have to choose between sticking behind its tough stance on debt restrictions or bailing out its real estate sector. The Chinese property development crisis would have disastrous impacts on stakeholders and anyone connected to them. The Chinese real estate market would also take a hit as Evergrande would have to 'fire sell' its assets and property, causing a depression in the rest of the market. According to the Financial Times, the real estate sector makes up 29% of the country's GDP. Hence, a wound to China is a wound to all, as attested by the harm done to Australia's iron ore industry. In economic terms, this is called 'contagion'—a name befitting, as this crisis's impact would have similar weight to the seriousness of COVID-19. Contagion is a financial phenomenon that acts similarly to bacteria's passing, but the infection is an economic failure. The missing of obligations by Evergrande could cause other companies and other countries to miss their commitments. As a result, predicting and planning finances becomes a lot more difficult, and debt accrues. Thus, it is part of the chain reaction despite sectors such as the iron ore industry not being directly exposed to Evergrande. Although the Chinese government has made it clear they have no intention of rescuing Evergrande, what they have done is inject liquidity of US$18.6 billion into the banking system, according to a Bloomberg article. Additionally, Evergrande has an opportunity of negotiating with its creditors to haircut their debt, that is, to restructure the amount they agreed to pay back. Seen as unavoidable by some, a haircut to their debt may be agreed upon given the stakes are so high. Many countries' economies have not fully recovered from the impact of the recent pandemics and no longer have the funds to soften the blow of a financial hit. In light of panic surrounding Evergrande, China has declared all cryptocurrency transactions, such as Bitcoin, illegal. The ban prevents any capital flight, where assets quickly flow out of the nation- causing an onset global financial crisis. Moreover, the recklessness of the 'three red lines' policy seems to be more problematic for global powers who should heed the actions of China if they want to protect their trade. What has China's property industry got to do with Australia? When I first contemplated this topic, I was baffled how a Chinese real estate company's debt could affect Australian mining companies to close shop. However, upon researching, what opened to me was an extreme scepticism for how reliable China was as a trade partner. If the health of our economy relies so heavily on China's real estate market, Australian miners should look to the more promising urbanisation incline in India, Africa and Indonesia. Look to December of 2020 for an insight into China's unreliability as a trade partner. Late last year, China set up a blockade against Australian coal imports that left ships stranded and mining companies confused, according to the New York Times. The game Beijing played with Australian exporters seemed in retaliation for Australia's demand for an inquiry into the origin of COVID-19. The shipment later found trade in India, an increasingly more urban country. People have never lived more in urban areas than today. According to the UN, in 2018, 55% of the global population lives in cities, a number expected to rise to 68% by 2050. The need for iron ore may be deteriorating, but this is likely to decrease after decades of increased urbanisation in India, Pakistan, and Indonesia. Africa is also growing their cities, and Japan is still our major importer of minerals. So the need for steel is not going anywhere anytime soon. Noel Ong comments, "Non-China growth will happen, the US will have their second industrial revolution, the second and third-tier nations will grow and equilibrium will take its place again... iron ore will find a price medium". What are the political implications? The Australian relationship with China has been somewhat strained recently, some perceiving China's reduction in consumerism with iron ore being their pulling away from dependence on Australian commodities. In some ways, China's dependence on Australia's minerals has given Australia a sort of veto power over China- as the supplier to necessary materials; we hold the ability to restrict them. This assessment was formed considering the various ethical conflicts Australia has called out China for in recent years; cyber-attacks and the Chinese made devices containing government spy technology being examples. This month, Microsoft has made major restrictions for China via their online service 'LinkedIn' over allegations that China has been silencing journalists via the website. Perhaps China has halted trade of coal, wine and wheat with Australia over the years out of sheer retort. However, China has had just as much power over us as major consumers of iron ore- an influence that mining companies should be wary of. China, The WTO and more There is indeed a delicate symbiosis between China and Australia. Some could argue it is currently in an imbalance that could affect us just as badly in the global political arena. Personally, I find it a stretch by miles to argue that China would sabotage their largest economic sector to jab countries in the process of their own destruction. Indeed, I even think the nation has a right to reduce its carbon footprint as quickly as possible, as does any country. Their attitude towards pollution and attempt to control their real estate sector could even positively influence Australia. However, the recklessness of their policies, the bullying of smaller nations, and the petty disruption of trade are cause enough to provoke Australia to drift from Chinese markets. However, these actions are not different to those used by other "big brothers" of the past. We all know that China's legal system is entirely inaccessible. Narratives would be correct in saying that it is too ambiguous to stay in a trade agreement with China if you are a small company because a breach in the contract is difficult to reprimand via a government as unforthcoming as Beijing. Sovereign states have issues so a small company would have no chance. At the time of China's barricade in 2020, Prime Minister Scott Morrison claimed that China banning iron ore would breach World Trade Organisation rules. Australia took China to the WTO for bans on wine and barley trade, which hasn't met a conclusion yet. China's relationship with the WTO is one of broken promises and these actions are the same of all "big brothers". According to the Information Technology and Innovative Foundation, "China has failed to meet numerous WTO commitments on issues such as industrial subsidisation, protection of foreign intellectual property, forcing joint ventures and technology transfer, and providing market access to services industries". Australia is still following up with the WTO regarding wine and barley and advocate for some reprimanding for China's leniency on the rules. From here, the WTO could make an established ground for China to exit trading with Australia in terms of iron ore safely and fairly. Additionally, China has been taking action in Africa to establish an iron ore mine in Africa's Guinea iron ore province. The idea of the new mining hub is for China to establish a different source of iron ore trade to assert independence from Australia. Although sparking fear, the enterprise is arguably a strategy in the trade war. Samso CEO Noel Ong reassures, "African iron ore will not be economically competitive, and unless China wants to be competitive with growing markets, it will buy from Australia again. Remember, it is not about price alone; it is also about the quality of the iron ore." Not all doom for Iron Ore in Australia I claim to be an expert in the mineral market or global economics no more than economists claim to be fortune-tellers. From my research on the topic, the consensus on this issue seems to be coming from a place of panic. However, the ASPI (Australian Strategic Policy Institute) claims that there is ground for some optimism regarding this story. David Uren of APSI reassures that despite the plunging iron ore market, the possibility of it surging as it did in May of this year isn't entirely unlikely. He also mentions that despite China having a 2016 5-year-plan to reduce steel output, the enterprise currently is not going to schedule for them. While the Chinese government planned for the top 10 steelmakers in the country to produce 60% of the steel used for Chinese infrastructure by the end of the 5-year-plan, local steel production only rose 2 per cent from 36%, according to ASPI. So reducing dependency on Australia will come both as a struggle and for a price. "Commodity cycles exist because it is cyclical" - Noel Ong, Samso CEO Final Thoughts It is a scary thought to imagine the damage that could be done to a global economy having already been hit with two years of a pandemic, but the Evergrande crisis provoked thoughts on this and so much more. Indeed, for Australians, Australian miners and stakeholders, the plummet of the iron ore market has confronted us with contemplating our future with China, their reliability as trade partners and the extent that we should be reliant on them. Industrialisation and mass urbanisation is yet to hit many countries. Australia will benefit as we pivot to these precious markets to offload our abundant resources. China is set on their steel output decreasing. Their trade with Australia is being challenged; yet, as hard they pull away from Australia, the mining industry is still more experienced and contains higher-quality products here than in most countries. I have optimism for Australia's mining industry, but China's Evergrande crisis should be heeded cautiously by China and all, for when big things fall, they fall hard. Author: Lucia Darcy, Samso Insights Contributor Lucia Darcy is an up and coming writer, columnist and essayist with her roots in social and philosophical academia. Lucia is a current Literary Studies student who aims to start her career as a copywriter and freelancer by engaging with various companies and topics. Her involvement with Samso is based on a shared curiosity for investment, mining and global economics. She believes that although her approach to each blog is from a place of learning, her writing is for people like herself - novices and autodidacts who wish to educate themselves on a range of matters. Media Partner Brilliant-Online: Our investment articles are also shared across Brilliant-Online magazine. Check out their investment column. Subscribe to Brilliant-Online. 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 If you find this article informative and useful, please help me share the information. I try to write 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. Keep us informed too! Please let us know your thoughts and send us any comments to info@samso.com.au. Remember to Subscribe to our YouTube Channel, Samso Media and our mail list to stay informed and make comments where appropriate. Other than that, you can also give us a Review on Google.

Coffee with Samso Episode 46 with Christian Easterday, Managing Director of Hot Chili Limited (ASX: HCH) Why the market did not like the latest Mineral Resource Estimate (MRE) The anxious wait for shareholders of Hot Chili Limited (ASX:HCH) for the latest Mineral Resource Estimate (MRE) on the Cortadera Copper-Gold Project is over. What resulted was an anticlimax and the much-praised rising of the share price did not eventuate. The MRE was actually pretty good, however, the retail market just did not like it. I speak to Christian Easterday about the lack of interest in the share price and what the numbers mean for the future of the company. As a shareholder of the company, I must admit that there was a sense of disappointment but I cannot see how this company can stay at a market capitalisation so far from what it has in asset value. This episode of Coffee with Samso delves into all these questions. At the conclusion of the conversation, I cannot help but think that this company has so much more value than what the market is valuing it at the moment. Christian shares with us what is happening in the background and the potential corporate activities that may happen in the coming months. Watch the interview: Coffee with Samso Episode 46 PODCAST Please let us know your thoughts and send us any comment to info@samso.com.au. Remember to Subscribe to our YouTube Channel, Samso Media and our mail list to stay informed and make comments where appropriate. Other than that, you can also give us a Review on Google. About Hot Chili Limited (ASX:HCH) Hot Chili is an ASX listed copper explorer and developer with an exciting portfolio of projects at low altitude in Region III on the coastal range of Chile. The Company is developing a central copper hub named Costa Fuego, which combines all three of its projects (Cortadera, Productora and San Antonio) into what is considered to be one of the most desirable copper development locations in the world. With a combined Mineral Resource base of 2.9Mt copper, 2.7Moz gold, 9.9Moz silver and 64Kt molybdenum, the addition of the maiden Cortadera mineral resource ranks Costa Fuego amongst the largest copper Mineral Resources along the Chilean coastal range. Cortadera Copper Project Cortadera’s maiden Mineral Resource positions Hot Chili with the largest copper Mineral Resource and one of the largest gold Mineral Resources for an ASX-listed emerging company. The Cortadera maiden Mineral Resource of 451Mt at 0.46% copper equivalent (CuEq) takes the total Mineral Resource estimate for Costa Fuego (Cortadera, Productora & El Fuego) to 724Mt at 0.48% CuEq for 2.9Mt copper, 2.7Moz gold, 9.9Moz Silver and 64kt molybdenum. Cortadera also contains a higher grade component of 104Mt at 0.74% CuEq, and this has strong potential to continue growing rapidly with further drilling. For further information on the Cortadera Maiden Resource please click on this link ASX Release- Maiden Resource at Cortadera Hot Chili’s combined Costa Fuego project now ranks as one of the world’s largest low-altitude, clean concentrate (no arsenic), copper-gold Mineral Resources not controlled by a major mining company, in what is considered to be one of the most desirable copper development locations in the world. Importantly, Cortadera lies 14km from the Company’s large-scale Productora copper development and adjacent to the high-grade El Fuego satellite copper projects. In February 2019, Hot Chili announced the execution of a formal Option Agreement to acquire a 100% interest in Cortadera. Since announcing the deal, Hot Chili has delivered six of the world’s best copper-gold porphyry drill results from Cuerpo 3 (the largest of the four porphyries discovered to date), confirming Cortadera as one of the most significant copper-gold discoveries of the past decade in Chile. Productora Copper Project Productora is one of the best located large-scale copper developments globally- (coastal range of Chile, low altitude, infrastructure rich, low capital intensity). Mineral Resources already stand at 1.5Mt copper and 1Moz gold, with an Ore Reserve of 167Mt established which underpins long life, bulk open-pit production, over a 10-year mine life, with first 8 years production averaging 66kt copper and 25koz gold annually. Productora is 100% owned by a Chilean incorporated company Sociedad Minera El Aguila SpA (SMEA). SMEA is a Joint Venture company, 80% owned by Sociedad Minera El Corazón Limitada (a 100% subsidiary of Hot Chili Limited), and 20% owned by CMP Productora (a 100% subsidiary of Compañía Minera del Pacífico S.A (CMP). El Fuego Copper Project To achieve the Company’s expanded growth strategy, Hot Chili has executed agreements to secure majority interest in two of the regions’ highest grade and most substantial underground mines- San Antonio and Valentina, collectively known as El Fuego. El Fuego is located 20km east of Productora, where the Company has completed a first-pass 5,000m drilling programme across two consolidated high grade copper mines (San Antonio and Valentina), which had seen little previous modern exploration owing to their private ownership for over 50 years. The majority of drilling was directed towards San Antonio which had reportedly produced approximately 2M tonnes grading 2% copper and 0.3g/t gold and 17g/t silver from shallow depths since mining commenced in 1964. Selected significant results 9m grading 2.0% copper from 132m down-hole depth, 6m grading 2.1% copper from 65m down-hole depth, 19m grading 2.0% copper from 61m down-hole depth (including 11m grading 2.4% copper), 15m grading 1.7% copper from 80m down-hole depth, 10m grading 1.6% copper from 58m down-hole depth (including 4m grading 2.7% copper), 5m grading 2.5% copper from 31m down-hole depth (including 2m grading 4.3% copper), Successful first-pass drilling at El Fuego has highlighted a shallow copper deposit which will add further scale to Hot Chili’s targeted high-grade resource inventory. About Christian Easterday Mr. Easterday is a geologist with over 20 years of experience in the mineral exploration and mining industry. He holds an honours degree in geology from the University of Western Australia, a masters degree in Mineral Economics from Curtin University of Technology and a masters degree in Business Administration from Curtin’s Graduate School of Business. Mr. Easterday has held several senior positions and exploration management roles with top-tier gold companies including Placer Dome, Hill 50 Gold and Harmony Gold, specialising in structural geology, resource development and mineral economic valuation. For the past eight years, Mr. Easterday has been involved in various aspects of project negotiation. This work has involved negotiations and valuations covering gold, copper, uranium, iron ore, nickel, and tantalum resource projects in Australia and overseas. Mr Easterday is a member of The Australian Institute of Geoscientists. 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 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

Announcement Exceptional Gallium Mineralisation Continues into Area B at Caladão Project Significant REE Results Expand Caldas Project's Footprint March 2025 Quarterly Report From Prospectus to Progress: 🆕 IPO Review Since debuting on the ASX in May 2024, Axel REE Limited (ASX: AXL) has maintained its strategic exploration push across two key Brazilian projects—the Caldas Rare Earths Project and the Caladão Gallium-REE Project (Figure 1). The company has taken significant steps forward in its goal to define high-value clay-hosted rare earth and gallium mineralisation, both critical to the future of electrification and green technologies. Figure 1: Location Map of the Caldas project tenements inside and outside the Caldera (source: AXL) 🔷 ASX Snapshot – Axel REE Limited (ASX: AXL) ASX Code: AXL Listing Date: 23 July 2024 IPO Offer Price: $0.25 Current Share Price (as at June 2025): $0.078 Market Capitalisation: $12.21 million Industry Group: Materials 🔷 What Has Axel Done Since Listing - Rare Earths or Gallium story? In May 2025, Axel reported significant high-grade REE results from its Caldas Project in the Poços de Caldas Alkaline Complex, with highlights including: CAL-AUG-022: 8.8m @ 5,309ppm TREO (26% MREO) from surface CAL-AUG-024: 10.8m @ 3,683ppm TREO (32% MREO) CAL-AUG-025: 11.4m @ 3,608ppm TREO (21% MREO) All drill holes returned intercepts above 1,000ppm TREO, confirming thick, clay-hosted mineralisation across the Caldera. Notably, mineralisation remains open at depth, suggesting room for resource growth through deeper drilling (Figure 2). Figure 2: Cross-section of auger drill prospects inside the Caldera, showing REE mineralisation remains open at depth. The Axel Board commented: “The consistent flow of high-grade TREO results continue from our shallow augerdrilling program inside the Poços de Caldas Alkaline Complex. The grades reported are consistent with major discoveries made by neighbours including Meteoric Resources NL (MEI) and Viridis Mining and Minerals Limited (VMM). Importantly, the high grade TREO mineralisation is increasing at the end of auger holes, demonstrating the mineralisation is open at depth and amenable to deeperdrilling.” Following this, in June 2025, the Company expanded its footprint at the Caladão Project in Brazil’s Lithium Valley, reporting: Gallium grades up to 128g/t Ga₂O₃ from surface in Area B (Figure 3) Significant lateral continuity across Areas A and B, with intercepts like: ⚬ 16m @ 75g/t Ga₂O₃ (CLD-AUG-351) ⚬ 8m @ 88g/t Ga₂O₃ (CLD-AUG-393) Figure 3: Geological map of Caladão Area B, highlighting the distribution of Gallium intersections, using a 50 g/t Ga2O3 cutoff. (source: AXL) Continued strong REE intercepts (Figure 4): ⚬ 11m @ 2,718ppm TREO (CLD-AUD-310) ⚬ 9m @ 1,618ppm TREO (CLD-AUG-332) Non-Executive Chairman, Paul Dickson, commented: “The latest Gallium assay results from Caladão continue to demonstrate both high grades and remarkable lateral and vertical continuity across both Area A and now Area B. This consistently mineralised profile supports our strategy to rapidly define a significant maiden gallium and REE resource in area B in addition to the Mineral Resource Estimation for gallium and REE in area A, which is in the MRE calculation phase with SRK. These results highlight both the continuity and scalability of gallium mineralisation, supporting our strategy for rapid resource development for REE and gallium in the Caladão Project.” Figure 4: Distribution of TREO intercepts at Area B over Geological map. (source: AXL) Both projects are progressing toward maiden Mineral Resource Estimates (MRE), with SRK Consulting engaged. The initial MRE for Caladão Area A is due mid-2025 (Figure 5). Figure 5: Caladão Project with Area A and B over Geology. (source: AXL) 🔷 Use of IPO Funds – Summary (Actual vs Budget) As at 31 March 2025, Axel REE Limited reported a total expenditure of $3.97 million, compared to the $13.82 million projected in its Prospectus for the 24 months following listing. The most significant variance relates to exploration, where only $1.43 million has been spent out of the forecasted $9.85 million, largely due to the early stage of the Company’s post-listing timeline. Having listed on the ASX on 19 July 2024, Axel is still within the first 8 months of its 24-month planned expenditure period. The Company confirmed it remains on track to meet its overall budgeted use of funds, with a substantial portion of exploration activity—including drilling and the delivery of a maiden Mineral Resource Estimate at the Caladão REE-Gallium Project—scheduled for the months ahead. This measured rollout reflects a strategic pacing of capital deployment while prioritising technical milestones. 🔷 Share Price Performance Since Listing Since its ASX debut on 23 July 2024 at an IPO offer price of $0.25, Axel REE Limited (ASX: AXL) has experienced a measured evolution in its share price. Following an initial period of subdued trading, the share price began to build momentum in April 2025 on the back of consistent drilling success across its Brazilian rare earths and gallium assets. A pronounced rally in May saw the stock surge past $0.09, driven by strong exploration updates and growing recognition of the Company’s clay-hosted REE potential. While still trading below IPO levels, Axel’s share price trend suggests the market is starting to respond to the underlying technical progress—a pattern not uncommon in the early chapters of emerging exploration stories. Figure 6: AXL’s Share price as of 23 June 2025 (source: ASX) Samso Concluding Comments Axel REE Limited has results emerging from both the Caladão and Caldas projects, and it looks like the Company is positioning to play a serious role in telling the story in the rare earth and gallium supply chain—two commodities poised to benefit from the ongoing energy transition. As the maiden MREs near completion and deeper drilling programs commence, investors may find themselves at a turning point. While the current market capitalisation sits below its listing valuation, the fundamentals being built are arguably stronger than they were at IPO. Axel is a company that sits in that limbo market space where it has what would have been a decent REE project, but that market has fallen out of favour with ASX investors. The Gallium story is one that is yet to be played out, but I think the market has some serious flaws for participants in the Gallium space. I am no expert in that space, but I think this is a very small market, and with China being the man behind the screen playing the puppets, I think this will not end well for ASX small-cap players. As always, seek the research — because that’s where the real story unfolds. The Samso Way – Seek the Research Axel REE’s story is a reminder that real value lies beneath the surface. While the market response may lag, the company’s consistent technical results across Caldas and Caladão highlight a strong foundation in critical minerals. With high-value MREO grades and Tier-1 geology, Axel is positioning itself as a serious long-term player in the REE and gallium space. 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 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.