Western Mining Group Technology Development Co., Ltd., with high-efficiency flotation reagents at its core, developed new-type lead-gold-silver collectors and zinc depressants, establishing an efficient mineral processing technology system. This technology effectively reduced zinc impurity content in lead concentrates and significantly improved the recovery efficiency of precious metals. After the research results were industrially applied at Western Mining Co., Ltd. Xitieshan Branch, mineral processing capacity increased from the designed 1.32 million mt/year to 1.5 million mt/year; lead and zinc recovery rates reached 92.76% and 95.66%, respectively, while gold and silver recovery rates increased by 4.65 and 2.73 percentage points, respectively.

Western Mining Co., Ltd. (601168) released its annual report on March 25,with operating revenue of 61.687 billion yuan in 2025, up 23% YoY; net profit attributable to shareholders of the publicly listed firm of 3.643 billion yuan, up 24% YoY; and basic earnings per share of 1.53 yuan.The company proposed to distribute a cash dividend of 0.6 yuan per 10 shares to all shareholders (tax inclusive).

[SMM Magnesium News] Western Magnesium Industry Co., Ltd., a subsidiary of Western Mining Co., Ltd., has successfully developed dedicated active magnesium oxide for cobalt precipitation through R&D, breaking international monopoly. Its sales reached 4,900 mt in 2024. This product has been applied in copper-cobalt mines in Africa, effectively improving cobalt precipitation efficiency, and achieving a 2.5% market share globally.

SMM News on June 3: Metal Market: As of the daytime close, domestic base metals generally declined, with only SHFE nickel rising, up 0.14%. SHFE aluminum and SHFE tin both fell by over 1%, with SHFE aluminum down 1.12% and SHFE tin down 1.23%. The declines of other metals were all within 1%. The main alumina contract rose by 1.39%. In addition, the main lithium carbonate contract rose by 0.33%, the main polysilicon contract fell by 2.65%, and the main silicon metal contract fell by 1.39%. The main European container shipping contract rose by 0.76%. In the ferrous metals series, prices fell collectively, with declines exceeding 1% for all except stainless steel. Stainless steel fell by 0.59%, iron ore fell by 1.14%, rebar fell by 1.18%, and HRC fell by 1.04%. In the coking coal and coke sector, coking coal fell by 3.03%, and coke fell by 1.1%. In the overseas market, as of 15:02, overseas base metals collectively declined, with LME aluminum, LME zinc, and LME nickel all falling by over 1%. LME aluminum fell by 1.05%, LME zinc fell by 1.3%, and LME nickel fell by 1.01%. The declines of other metals were all within 1%. In precious metals, as of 15:02, COMEX gold fell by 0.52%, and COMEX silver fell by 0.98%. Domestically, SHFE gold rose by 1.4%, and SHFE silver rose by 2.85%. Geopolitical tensions are high, and tariff policies have fluctuated repeatedly. The US manufacturing sector continues to be weak. Market uncertainty remains elevated, and risk-averse sentiment has intensified, driving gold and silver prices higher, with SHFE silver outperforming SHFE gold. 》Precious metals sector surges, Western Mining hits daily limit! After silver prices soar, wait-and-see sentiment prevails in spot market [SMM Flash News] Market conditions as of 15:02 today 》Click to view SMM Market Dashboard Macro Front Domestic Aspect: [Stable demand growth: Total social logistics in China increased by 5.6% YoY from January to April this year] The China Federation of Logistics and Purchasing (CFLP) released logistics operation data for the first four months of this year today (June 3). In April, China's logistics sector withstood external shocks and pressures, demonstrating strong resilience and development potential, maintaining an overall stable and improving development trend. From January to April this year, the total social logistics in China reached 115.3 trillion yuan, up 5.6% YoY. [National Federation of Industry and Commerce Automobile Dealers Chamber of Commerce proposes: Resolutely resist "cut-throat competition" primarily in the form of "price wars"] The National Federation of Industry and Commerce Automobile Dealers Chamber of Commerce announced that, under the influence of the current industry market conditions, the automobile dealership sector has been severely affected and impacted, facing a series of issues such as increased operating pressures, reduced profitability, high vehicle inventory, and tight working capital, which have had a serious impact on the sustained and healthy development of the industry. Particularly since Q2 this year, amid the impact of a new round of "price wars," the situation faced by automotive dealers across the board has become more severe. To maintain a good, healthy, and fair market competition order and promote the high-quality development of the automotive industry, including the automotive dealership sector, the National Federation of Industry and Commerce Automotive Dealers Chamber of Commerce proposes the following initiatives: 1. The entire industry should prioritize the overall goal of achieving high-quality development in China's automotive industry, strictly adhere to the principle of fair competition, and resolutely resist cut-throat competition behaviors primarily in the form of "price wars." 2. Focus on brand image. Prevent frequent adjustments to sales policies and product selling prices from increasing the difficulty of sales for dealers and affecting the brand's image among consumers. 3. Improve the living conditions of automotive dealers. Adhere to the principle of producing based on sales, reasonably set annual production targets for enterprises and sales targets for dealers, refrain from shifting inventory burdens onto dealers or forcing them to purchase vehicles, effectively reduce dealers' inventory levels; rectify the issue of inverted purchase-sale prices, promptly provide rebates to dealers, shorten the payment collection cycle for dealers, reasonably determine the number of test-drive vehicles, and alleviate the pressure on dealers' working capital. 4. Optimize business policies. Reasonably set performance evaluation indicators for dealers, exercise caution in using fines, and avoid coercing dealers to meet corresponding targets through performance evaluations. 5. Improve the network exit mechanism. Do not coerce dealers to exit the network or close stores under the pretext of optimizing network channels, and provide appropriate compensation to dealers who genuinely need to exit the network or close stores. ► The central parity rate of the RMB against the US dollar in the interbank foreign exchange market on June 3 was 7.1869 RMB per US dollar. US dollar updates: As of 15:02, the US dollar index rose by 0.14% to 98.83. The US core PCE price index for April increased by 2.5% YoY, in line with expectations, and decreased by 0.2 percentage points from the revised prior value of 2.7%, representing the smallest increase in over four years. The US ISM manufacturing PMI for May was 48.5, the lowest since November 2024, marking the third consecutive month of contraction, with the imports sub-index hitting a 16-year low. Lorie Logan, President of the Federal Reserve Bank of Dallas, stated that due to a stable labor market, inflation slightly above target, and an uncertain outlook, the US Fed is closely monitoring a range of data to determine what response measures may be needed. Austan Goolsbee, President of the Federal Reserve Bank of Chicago, expressed that he still believes that after the "dust" of uncertainty brought about by tariff policies settles, the US Fed will be able to reduce short-term borrowing costs. (Wenhua Comprehensive) Macro updates: Today, data such as the year-on-year rate of Switzerland's CPI for May, the year-on-year rate of the eurozone's harmonized CPI for May (unadjusted initial value), the eurozone's unemployment rate for April, the month-on-month revised value of the US's durable goods orders for April, the month-on-month value of the US's factory orders for April, and the US's JOLTs job openings for April will be released. Additionally, South Korea held its presidential election on June 3, with the stock market closed for the day. The Zhengzhou Commodity Exchange designated 8:55-9:00 on June 3 as the call auction period for all futures and options contracts, with night session trading resuming that evening. Goolsbee, a 2025 FOMC voting member and President of the Federal Reserve Bank of Chicago, participated in a Q&A session. Fed Chairman Powell delivered opening remarks at an event. South Korea tentatively scheduled its presidential election for June 3. The Reserve Bank of Australia released the minutes of its June monetary policy meeting. Bank of Japan Governor Kazuo Ueda delivered a speech. South Korea held its presidential election. Crude Oil: As of 15:02, oil prices in both markets rose simultaneously, with US crude up 0.46% and Brent crude up 0.29%, primarily due to investor concerns about supply and support from a weaker US dollar. ING analysts stated in a report that the oil market surged on Monday amid escalating geopolitical risks and OPEC's production increase falling short of expectations, providing support for oil prices. ING said on Tuesday, "The momentum carried over into the early morning trading today." Both WTI crude oil and Brent crude oil futures rose nearly 3% the previous day, after OPEC maintained its July production increase at 411,000 barrels per day, the same as the previous two months and below market expectations. Priyanka Sachdeva, a senior market analyst at Phillip Nova, said, "Supported by a weaker US dollar, crude oil prices continue to rise." A wildfire in Alberta, Canada, temporarily halted some oil and natural gas production, potentially reducing supply and exacerbating supply concerns. It is estimated that the Canadian wildfire affected over 344,000 barrels per day of oil sands production, accounting for approximately 7% of the country's total crude oil production. In addition, preliminary survey results released on Monday indicated that US crude oil inventories may have declined last week, while distillate and gasoline inventories likely rose. Before the weekly inventory report was released, the average forecast of four surveyed analyst firms was that US crude oil inventories fell by approximately 900,000 barrels in the week ending May 30. The American Petroleum Institute (API) will release its weekly crude oil inventory report at 4:30 Beijing time on Wednesday, and the US Energy Information Administration (EIA) will release its weekly crude oil inventory report at 22:30 Beijing time on Wednesday. (Wenhua Comprehensive) SMM Daily Review ► [SMM MHP Daily Review] June 3: Indonesian MHP prices decline ► [SMM Nickel Sulphate Daily Review] June 3: Nickel salt prices remain stable ► Stainless steel and raw material prices diverge; short-term high-grade NPI prices may come under pressure [NPI Daily Review] ► Silver prices open higher with a gap after the Dragon Boat Festival; downstream sentiment remains cautious [SMM Daily Review]

》Check SMM metal quotes, data, and market analysis 》Subscribe to view historical price trends of SMM metal spot cargo On May 14, 2025: As of April 30, 2025, all companies have disclosed their 2024 annual reports. According to SMM statistics, a total of 19 publicly listed firms operate copper smelters. These 19 publicly listed firms are: Tongling Nonferrous Metals Group (000630), Jiangxi Copper Corporation (600362), Jinchuan Group International Resources Co., Ltd. (02362.hk), Daye Nonferrous Metals Group (00661.hk), Yunnan Copper (000878), Zijin Mining (601899), Yuguang Gold and Lead Group (600531), Western Mining Co., Ltd. (601168), Yunnan Tin Co., Ltd. (000960), Shandong Humon Smelting (002237), Zhongjin Gold (600489), Baiyin Nonferrous Group Co., Ltd. (601212), Ningbo Jintian Copper (601609), Huludao Zinc Industry Co., Ltd. (000751), North Copper (000737), Zhejiang Chifoo Holding Group Co., Ltd. (002266), Guangdong Feinan Resources Co., Ltd. (301500), Beijing GEEN Environment Engineering Co., Ltd. (603588), and Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. (000060). 2024 Production and 2025 Production Plans for Copper Cathode at Each Smelter According to annual report disclosures and SMM's understanding, the total copper cathode production of the aforementioned 19 copper smelters in 2024 was 10.5558 million mt, with an increase of 642,000 mt, up 6.5% YoY. Data from the National Bureau of Statistics (NBS) shows that the national production in 2024 was 13.644 million mt, with these 19 enterprises accounting for 77.37% of China's total copper cathode production. This figure increased by 1.04% compared to the same period last year. We expect that with the release of new capacity, industry concentration will increase again in the future. Regarding the specific situations of each smelter: Only 4 out of the 19 smelters experienced production cuts. Among them, Yunnan Copper had the largest decline, with a significant drop in production due to the relocation of its headquarters smelter. The largest increase was seen at Jiangxi Copper, with an annual copper cathode production of 2.2919 million mt, up 194,600 mt or 9.3% YoY in 2024, continuing to lead the copper industry. This was followed by North Copper, with a production increase of 178,800 mt compared to 2023, reaching 31.32 mt. Then came Jinchuan Group, with a production of 1.3272 million mt, an increase of 158,100 mt compared to 2023. In addition, based on their 2025 production plans, the total production in 2025 is expected to be 11.4028 million mt, an increase of 847,000 mt or 8%. According to SMM statistics, the new production from domestic smelters from January to May 2025 has already reached 536,400 mt, and it is highly probable that the annual increase of 847,000 mt will be achieved. In 2025, two smelters are expected to increase their production by more than 200,000 mt. Among them, the largest increase is expected to be from Yunnan Copper, with an increase of 254,000 mt, mainly due to the resumption of production after the relocation of the smelter and the commissioning of new smelters. Next is Jinchuan Group, which is expected to increase its production by 252,800 mt, thanks to the commissioning of a new smelter. In addition, due to the tight supply of copper concentrates, six smelters are expected to implement production cuts in 2025, two more than last year. Overall, although copper concentrate TCs hit a record low this year, it has not hindered the expansion pace of copper smelters.

JCHX Mining Management Co., Ltd. announced in the evening of May 8 that, given the company's plan to acquire an additional 5% stake in CMH Colombia S.A.S., and upon completion of the acquisition, the company will indirectly hold a 55% stake in CMH Colombia S.A.S. as the controlling shareholder, leading the subsequent development and construction of the Alacran copper-gold-silver mine. To continuously advance the progress of the Alacran copper-gold-silver mine project, the company plans to contribute approximately $231.22 million in proportion to its shareholding for the construction of the Alacran copper-gold-silver mine project. This project is a mining and beneficiation project, with the mine adopting open-pit mining methods. The total ore quantity within the designed pit limit is 97.9 million mt. The estimated project investment is $420.4 million, with a construction period of 2 years. Upon completion, the mine's expected lifespan is 14.2 years. The project's after-tax net present value (NPV) is $360 million (with a discount rate of 8%), and the internal rate of return (IRR) is 23.8%, with an estimated payback period of 3 years. This investment does not constitute a major asset restructuring and is not a related-party transaction. Regarding the prerequisites for this investment, JCHX Mining Management Co., Ltd. announced: This investment is contingent upon the company's completion of the equity acquisition of CMH and obtaining control over CMH. Regarding the impact of the investment on publicly listed firms, JCHX Mining Management Co., Ltd. stated: (1) The company acquired a stake in Cordoba Minerals Corp. in 2019 and subsequently directly held a 50% interest in CMH. This planned additional acquisition of a 5% stake in CMH aims to deeply participate in the subsequent development and construction of the Alacran copper-gold-silver mine. Investing in the subsequent construction of this project in proportion to its shareholding after this equity acquisition aligns with the company's long-term development plan, is conducive to promoting the company's sustained, stable, and healthy development, and does not harm the interests of the company, its shareholders, especially minority shareholders. (2) After the project is put into operation, it is expected to have a certain impact on the company's future business development and operating performance, facilitating the company's further expansion into the field of mine resource development, improving the company's industrial layout, and promoting the company's sustained, stable, and healthy development. JCHX Mining Management Co., Ltd. cautions: This investment is contingent upon the company's completion of the equity acquisition of CMH and obtaining control over CMH, and related matters are still subject to uncertainties. JCHX Mining Management Co., Ltd. announced in the evening of April 27 that the company has renewed the mining production contracting agreement with Western Mining Co., Ltd. for the Xitieshan lead-zinc mine and recently obtained the contract document signed and sealed by both parties. Based on the estimated workload, the contract amount is approximately 377 million yuan. The fulfillment of this contract will have a certain impact on the company's performance and is conducive to promoting the company's future business development. JCHX Mining Management Co., Ltd. disclosed its 2024 annual report on April 25.In 2024, the company achieved a total operating revenue of 9.942 billion yuan, up 34.37% YoY, and a net profit attributable to shareholders of 1.584 billion yuan, up 53.59% YoY. Regarding the reasons for the performance growth in 2024, the company stated that it was mainly due to the increased production and efficiency of mine projects in the mine resource development business during the reporting period. Specifically, the company achieved resource sales revenue of 3.209 billion yuan in 2024, up 412.85% from the same period last year, with its share of the company's operating revenue during the reporting period increasing from 8.46% in 2023 to 32.28%. The company produced 48,700 mt of copper metal (equivalent) throughout the year, up 238.19% YoY, and 356,500 mt of phosphate ore, up 115.67% YoY. JCHX Mining Management also announced its 2025 business plan, which includes the following for the mine services segment: completing a total underground excavation volume of 3.8694 million m³ and a total underground mining and ore supply volume of 44.1729 million mt (including ore volume extracted using the natural caving method), with YoY changes of -7.25% and 6.46%, respectively. For the resource development segment, the company plans to produce 79,400 mt of copper metal, up 63.04% YoY, and 300,000 mt of phosphate ore, down 15.85% YoY. JCHX Mining Management also announced its Q1 2025 performance on April 25, achieving a revenue of 2.811 billion yuan in the first quarter, up 42.49% YoY, and a net profit attributable to shareholders of 422 million yuan, up 54.10% YoY. On May 6, Huayuan Securities issued a research report, giving JCHX Mining Management an "accumulate" rating. The main reasons for the rating include: 1) The total volume of mining services business remains stable, with a decline in unit gross profit; 2) Accelerated release of resource development business; 3) In 2025, it is planned to continue increasing copper mine production, with the rest remaining relatively stable; 4) In Q1 2025, the copper business continued to increase production, contributing to significant performance growth. Risk warnings: Risks of slower-than-expected progress in ongoing projects; risks of metal prices falling more than expected; risks of work safety; and geopolitical risks. On April 27, Hua'an Securities issued a research report, giving JCHX Mining Management a "buy" rating. The main reasons for the rating include: 1) The company released its 2024 annual report and Q1 report; 2) The mining services business is operating steadily; 3) The release of self-owned resources is expected to drive performance growth. Risk warnings: Risks of capacity release falling short of expectations; risks of volatile copper and phosphate prices; risks of mine safety and environmental protection; and risks of overseas operations, among others.