[Penoles Releases Q1 2026 Production Report] Penoles released its Q1 2026 production data. For the zinc mine segment, its zinc concentrates production reached 66,600 mt in the quarter, up 15.6% YoY, mainly driven by the resumption of operations at Tizapa and improved grades and recovery rates at Juanicipio, Sabinas, and Fresnillo. For the zinc smelting segment, its zinc production reached 48,100 mt in the quarter, up 14.7% YoY, primarily due to an increase in the volume of concentrates processed by the zinc smelter, which had undergone its annual planned maintenance shutdown in Q1 2025.

Own-sourced copper production from Glencore’s African copper assets — KCC and Mutanda — rose by 27,400 tonnes (68%) year on year to 67,900 tonnes, with KCC contributing 51,900 tonnes (up 72% year on year) and Mutanda 16,000 tonnes (up 55%), according to the production report. Glencore attributed the increase to improved grades at both operations. African cobalt production fell to 5,100 tonnes, down by 42% year on year, with Mutanda producing no cobalt in the quarter compared with 2,900 tonnes a year earlier, according to the report. For the first quarter of 2026, Glencore’s own-sourced cobalt production was 5,800 tonnes, down by 39% year on year.

SMM News, April 30: According to SMM statistics, the total primary aluminum output overseas in April 2026 fell 10.2% year-on-year, while the average daily overseas output dropped 10.0% month-on-month, mainly as the impact of production cuts at Middle Eastern aluminum smelters became more evident. During the period, despite accelerated production resumptions at overseas primary aluminum smelters amid high prices, the overall incremental volume was far lower than the scale of production cuts in the Middle East, leading to a notable year-on-year and month-on-month decline in overseas primary aluminum output in April. Per Alcoa’s Q1 earnings report, the company announced on April 8, 2026 that the restart of its San Ciprián aluminum smelter in Spain had been safely completed. According to Vedanta’s production report, its primary aluminum output in the 2026 fiscal year (Q2 2025 to Q1 2026) hit a record high of 2.456 million tons, up 1% year-on-year, mainly driven by improved operational efficiency. As per an official announcement from Century Aluminum, idle capacity at its Mt. Holly aluminum smelter in South Carolina has commenced restarting, with the first batch of primary aluminum production underway. It is expected that the resumed capacity will reach full operational status by the end of June, involving a total capacity of approximately 50,000 tons. In addition, the second production line at its primary aluminum smelter in Iceland has resumed production several months ahead of schedule. Staff are energizing the first batch of electrolytic cells for the second line and will accelerate the restart of remaining cells, targeting a near-full production level by the end of July. Looking ahead to May 2026, production resumptions at smelters in the US and Iceland, together with the ramp-up of new capacity in Indonesia, are expected to push average daily output higher month-on-month, though year-on-year output is projected to remain in sharp negative growth. Overall, given the unresolved situation in the Middle East, overseas primary aluminum output is expected to stay in sustained year-on-year negative growth in the short term. Market participants shall continue to monitor subsequent announcements from relevant aluminum smelters in the Middle East as well as global aluminum inventory trends.

In-depth Interpretation & Review of Indonesia’s Aluminum Industry Policies Centering on bauxite and extending to the entire aluminum industrial chain, the Indonesian government has rolled out a series of policies focusing on three core dimensions: volume control, pricing mechanisms, and tax rates. These measures aim to gradually improve the regulatory system, standardize industrial development, and accelerate the transformation from raw ore exports to integrated domestic downstream aluminum production. This article sorts out relevant policy details and their impacts in detail as follows: I. Volume Control: Strengthen Quota Management & Full-process Digital Supervision to Achieve Precise Supply Regulation ① Bauxite Quota: RKAB Approval Cycle Adjusted to Enhance Government Regulation Capacity Regulation Capacity Indonesia standardizes the full-process mining and sales of bauxite across all mines via the RKAB (Mining Work Plan and Budget) system. The core policy adjustment focuses on optimizing the approval cycle, mainly based on Permen ESDM No.17/2025 issued by the Ministry of Energy and Mineral Resources (ESDM) on October 3, 2025. New regulations shall be officially implemented starting from 2026: Approval Cycle Revision: The RKAB approval model for all mining enterprises is changed from once every three years to annual application and annual approval. Mines must submit RKAB applications for the next year between October 1 and November 15 each year, with all approvals completed by the end of the year to guarantee orderly production in the subsequent year. Transition & Application Timeline: In Q1 2026, if the new annual RKAB quota is still under review, the original 2026 quota can be adopted temporarily. Quota adjustment applications for the current year shall be submitted by the end of July annually, while the centralized submission window for the next year’s quota is set from October 1 to November 15, forming a dual management model of annual approval plus dynamic adjustment. Scenario Analysis & Policy Impacts Original Three-Year Approval Model: Unable to accurately forecast market demand for the next two years, this model easily triggers supply-demand mismatches and overall oversupply, putting downward pressure on bauxite prices. It also limits flexible government regulation, resulting in significant policy lag as quotas cannot be adjusted timely in response to market changes. New Annual Approval Model: The government gains stronger annual regulatory authority to dynamically adjust total annual quotas based on international bauxite prices, global supply-demand fundamentals and domestic smelting demand, improving price stability. Meanwhile, it strengthens fiscal revenue guarantees and regulatory efficiency through a more transparent and streamlined approval process, reduces rent-seeking behaviors, and advances compliant industrial development. ② SIMBARA System: Full-chain Digital Supervision to Curb Illegal Mineral Trading In accordance with Perpres 94/2025 (Presidential Regulation No.94/2025), the SIMBARA system (Inter-Ministerial Mineral and Coal Information System) officially incorporated bauxite into its regulatory scope in 2025, establishing a full-process digital supervision system covering operations from mines to end users. Through the SIMBARA official portal, the Indonesian government tracks real-time bauxite sales data and monitors the entire transportation chain from mining to downstream processing, including inter-island logistics, with precise linkage to mining quotas. It covers all key links: mining sites, processing, transportation and exports. The implementation of this system not only aligns Indonesian bauxite mining with global industry standards, but also effectively restrains irregular activities such as illegal mining, child labor and environmental damage, promoting green and compliant development of the sector. All bauxite mines are required to submit full-operation documents via the SIMBARA system, including production reports, inventory statements and raw material procurement records, for joint reviews by four core authorities: the Ministry of Energy and Mineral Resources, Ministry of Industry, Ministry of Trade, and Ministry of Transportation. The mechanism realizes data sharing, joint supervision and full traceability. II. Tax Rate: Standardize Billing Rules & Optimize Tax Burden Structure ① Indonesia’s Bauxite Tax Framework: Fixed Fee + Ad Valorem Royalty The country’s bauxite taxation policy adopts a dual structure of fixed administrative fees and floating royalties, clarifying differentiated charging rules for various mining rights. Combined with revisions to the HPM pricing mechanism, the overall tax burden structure has been optimized. Fixed Fee: Paid in a lump sum on an annual basis Core Formula: Fixed Fee = Mining Concession Area × Corresponding Unit Rate Floating Royalty: Charged per sales transaction and highly linked to commodity prices Core Formula: Royalty = Sales Volume × Transaction Price × Applicable Rate Transaction bonuses and premiums shall be included in invoice amounts for unified tax calculation; Pricing benchmark confirmation: If the premium is negative (actual transaction price benchmark price), tax calculation shall adopt HPM plus premium. Calculation Example Assume HPM = USD 44/ton, bauxite indicators: Al₂O₃=49%, Reactive Silica=2%. Actual transaction price: USD 35/ton (Premium = -9 USD/ton), Bonus = USD 1/ton, net transaction price = USD 36/ton. Given the negative premium, royalty is calculated based on HPM: Royalty = 44 USD/ton × 7% (standard bauxite royalty rate) = 3.08 USD/ton. ② Revised HPM Pricing Mechanism Effective April 15, 2026 (Kepmen ESDM No. 144/2026) Core Revisions: Pricing unit adjusted: Dry Metric Ton (DMT) → Wet Metric Ton (WMT) New deduction factor: Reactive Silica (R-SiO₂) New moisture adjustment clause added Regulators require bauxite enterprises to cooperate with inspection institutions and add key indicators including alumina content, reactive silica and moisture content to official Certificate of Analysis (COA). Data updates on the e-PNBP and MVP systems are also mandated to ensure accurate royalty calculation. The revised HPM mechanism lowers benchmark prices and overall royalty costs, reducing comprehensive bauxite mining costs and accelerating mine shipments as well as downstream industrial integration layouts. ③ Optimized HPM Pricing Cycle: Higher Flexibility to Align with Global Markets The pricing cycle has been shortened to reduce policy lag and better reflect LME aluminum price fluctuations. Old Rules (Before March 1, 2025): Monthly single HPM release. The pricing reference window covered the 20th of the month before last to the 19th of the previous month, with a pricing lag of around 45 days, failing to reflect timely international price changes. New Rules (Effective March 1, 2025): Semi-monthly HPM releases on the 1st and 15th of each month. 1st Issue (1st of each month): Calculated by average LME aluminum spot prices from the 5th to the 25th of the prior month (21-day cycle, 5-day lag); 2nd Issue (15th of each month): Calculated by average LME aluminum spot prices from the 26th of the prior month to the 4th of the current month (10-day cycle, 5-day lag). Core Benefits Improved market sensitivity: The shortened cycle enables HPM to reflect real-time LME movements, strengthens linkage with global pricing, and avoids price distortion caused by long-term average calculations; Optimized revenue management: The government can adjust domestic mineral benchmark prices more precisely in response to global aluminum volatility, balancing reasonable profit margins for mining enterprises and stable national tax revenue. III. Pricing Policy: Abolish HPM Floor Price to Boost Market Circulation & Downstream Development A landmark adjustment in Indonesia’s bauxite price regulation is the cancellation of the mandatory HPM minimum settlement price, implemented in phases to balance fiscal revenue and market vitality. Old Regulation (Kepmen ESDM No.72/2025): Bauxite transaction prices were strictly prohibited from falling below HPM. This rule triggered supply-demand imbalance, sluggish ore sales and suspended shipments by major miners, severely restricting normal market circulation. New Regulation (Kepmen ESDM No.268/2025): Signed on August 8, 2025, and officially implemented in late August 2025. The core revision abolishes the HPM floor price and allows transactions below benchmark prices. Nevertheless, taxes and royalties are still calculated based on standard HPM values to shield national fiscal revenue from price declines. Core Advantages of the Revised Policy Government Perspective: HPM-based tax collection guarantees stable fiscal revenue independent of market fluctuations. Loosened price controls revitalize trading activity, resolve the supply glut dilemma, support mine capacity expansion and local employment, and secure long-term industrial stability. Industrial Perspective: Discounted transactions ease inventory pressure for miners and accelerate capital turnover. Lower raw material procurement costs reduce production expenses for domestic smelters, incentivize downstream capacity commissioning, and help Indonesia achieve its 2040 strategic goal of full aluminum chain integration.

According to Vedanta's production report, Vedanta's annual alumina production in FY2026 (Q2 2025–Q1 2026) rose 48% YoY to 2.916 million mt, while aluminum production hit a record high of 2.456 million mt, up 1% YoY, primarily driven by improved operational efficiency.

Chile's Antofagasta mining company released its Q1 2026 production report. CEO Ivan Arriagada stated that he was pleased to report another quarter of strong cash cost performance. The group's net cash cost for the quarter was 108¢ per pound, with Los Pelambres mine at 72¢ per pound and Centinela mine at 34¢ per pound. This fully demonstrates the quality of the company's asset portfolio, including our significant exposure in gold and molybdenum operations.

SMM Morning Meeting Summary: Overnight, LME copper opened at $13,181.5/mt, fluctuated downward in early trading to touch a low of $13,139.5/mt, then the price center moved up steadily to reach a high of $13,305/mt near the end of the session, ultimately closing at $13,296/mt, up 1.31%, with trading volume at 25,300 lots and open interest at 289,300 lots, down 2,580 lots from the previous trading day, indicating bears reducing positions. Overnight, the most-traded SHFE copper 2605 contract opened at and touched a low of 101,580 yuan/mt, then the price center surged upward to probe 102,220 yuan/mt, before moving sideways to ultimately close at 102,150 yuan/mt, up 1.44%, with trading volume at 42,000 lots and open interest at 165,300 lots, down 2,780 lots from the previous trading day, indicating bears reducing positions.

SMM Morning Meeting Minutes: LME copper opened at $12,965/mt overnight, hitting an early high of $13,000/mt before its price center declined and touched a low of $12,783/mt, then maintained a "W" pattern, ultimately closing at $12,855/mt, down 1.42%. Trading volume reached 30,000 lots, an increase of 3,970 lots from the previous session; open interest stood at 324,000 lots, a decrease of 8,112 lots from the previous session, reflecting an overall reduction in long positions. The most-traded SHFE copper 2603 contract opened at 100,430 yuan/mt overnight, touching an early low of 98,550 yuan/mt before its center fluctuated upward to a high of 101,400 yuan/mt, ultimately closing at 101,130 yuan/mt, down 1.34%. Trading volume reached 105,000 lots, a decrease of 181,000 lots from the previous session; open interest stood at 179,000 lots, a decrease of 3,493 lots from the previous session, reflecting an overall reduction in long positions.

On May 19, the National Bureau of Statistics (NBS) released the main data on industrial production above designated size for April. The data showed that the production of solar cells (PV cells) in April was 71.93 GW, up 33.4% YoY. The cumulative production of PV solar cells (PV cells) from January to April was 239.06 GW, up 18.8% YoY. The original text is as follows: In April, the actual year-on-year growth of the value-added of industrial enterprises above designated size was 6.1% (the growth rate of value-added is the actual growth rate after deducting price factors). On a MoM basis, the value-added of industrial enterprises above designated size increased by 0.22% in April compared to the previous month. From January to April, the value-added of industrial enterprises above designated size increased by 6.4% YoY. Broken down by the three major sectors, in April, the value-added of the mining industry increased by 5.7% YoY, that of the manufacturing industry increased by 6.6%, and that of the production and supply of electricity, heat, gas, and water increased by 2.1% YoY. Broken down by economic type, in April, the value-added of state-controlled enterprises increased by 2.9% YoY; that of joint-stock enterprises increased by 6.6%, that of foreign-funded and Hong Kong, Macao, and Taiwan-invested enterprises increased by 3.9%; and that of private enterprises increased by 6.7% YoY. Broken down by industry, in April, the value-added of 36 out of 41 major industrial categories maintained year-on-year growth. Among them, the coal mining and washing industry increased by 6.3%, the oil and natural gas extraction industry increased by 4.3%, the agricultural and sideline food processing industry increased by 7.3%, the liquor, beverage, and refined tea manufacturing industry increased by 5.5%, the textile industry increased by 2.9%, the chemical raw materials and chemical products manufacturing industry increased by 8.0%, the non-metallic mineral products industry increased by 0.4%, the ferrous metal smelting and rolling processing industry increased by 5.8%, the non-ferrous metal smelting and rolling processing industry increased by 7.5%, the general equipment manufacturing industry increased by 7.8%, the special equipment manufacturing industry increased by 3.7%, the automobile manufacturing industry increased by 9.2%, the railway, shipbuilding, aerospace, and other transportation equipment manufacturing industry increased by 17.6%, the electrical machinery and equipment manufacturing industry increased by 13.4%, the computer, communication, and other electronic equipment manufacturing industry increased by 10.8%, and the electricity and heat production and supply industry increased by 1.2% YoY. Broken down by product, in April, the output of 341 out of 623 products in industries above designated size increased year-on-year. Among them, steel production was 125.09 million mt, up 6.6% YoY; cement production was 165.3 million mt, down 5.3% YoY; the production of ten non-ferrous metals was 6.76 million mt, up 3.1% YoY; ethylene production was 2.98 million mt, up 10.1% YoY; automobile production was 2.604 million units, up 8.5% YoY, including 1.228 million units of new energy vehicles (NEVs), up 38.9% YoY; power generation was 711.1 billion kWh, up 0.9% YoY; and crude oil processing volume was 58.03 million mt, down 1.4% YoY. In April, the sales-to-output ratio of industrial enterprises above designated size was 97.2%, down 0.2 percentage points YoY. The export delivery value of industrial enterprises above designated size reached 1,246.9 billion yuan, with a nominal year-on-year increase of 0.9%. Key Data on Industrial Production Above Designated Size in April 2025 Notes 1. Explanation of Indicators Growth rate of industrial added value: This refers to the growth rate of industry, which is an indicator used to reflect the extent of changes in the volume of industrial production over a certain period. This indicator can be used to assess the short-term operational trends of the industrial economy and the degree of economic prosperity. It also serves as an important reference and basis for formulating and adjusting economic policies and implementing macroeconomic regulation. Sales-to-output ratio: This is the ratio of sales output value to total industrial output value, used to reflect the connection between production and sales of industrial products. Export delivery value: This refers to the value of products exported by industrial enterprises on their own behalf (or through commission) (including those sold to Hong Kong, Macao, and Taiwan regions) or delivered to foreign trade departments for export, as well as the value of products produced through processing with materials, components, and assembly supplied by foreign merchants, and compensation trade. Daily average product output: This is calculated by dividing the total output of industrial enterprises above designated size announced for the current month by the number of calendar days in that month. 2. Statistical Scope The statistical scope of industries above designated size includes industrial enterprises with an annual main business income of 20 million yuan or more. Due to annual changes in the scope of industrial enterprises above designated size, to ensure the comparability of data between the current year and the previous year, the base period figures used for calculating the year-on-year growth rates of various indicators, such as product output, are made as consistent as possible with the statistical scope of enterprises in the current period. There may be differences in the scope of data compared with those published in the previous year. The main reasons are as follows: (1) Changes in the scope of statistical units. Each year, some enterprises reach the designated size and are included in the survey scope, while others exit due to a reduction in size. Additionally, newly established and operational enterprises, bankruptcies, and enterprises that have had their business licenses revoked (or suspended) also affect the scope. (2) There is a phenomenon of duplicate statistical counting of product output data across regions for some enterprise groups (companies). Duplicate output across regions for enterprise groups (companies) has been eliminated based on special surveys. 3. Survey Method A comprehensive monthly survey is conducted on the industrial production reports of industrial enterprises above designated size (data for January is exempted from reporting). 4. Industry Classification Standard The National Economic Industry Classification Standard (GB/T 4754-2017) is implemented. 5. Revision of Month-on-Month Data Based on the automatic correction results of the seasonal adjustment model, the month-on-month growth rates of industrial added value for industrial enterprises above designated size from April 2024 to March 2025 have been revised. The revised results and the month-on-month (MoM) data for April 2025 are as follows:

CMOC disclosed its Q1 report on the evening of April 25, achieving revenue of 46.006 billion yuan in Q1 2025, down 0.25% YoY, and net profit of 3.946 billion yuan, up 90.47% YoY. CMOC stated that the selling prices of its copper and cobalt products increased YoY, while overall costs decreased YoY, leading to a YoY rise in profit. CMOC also announced progress on significant matters during the reporting period: the company seized favorable market opportunities to stabilize and increase production, with the output of its main products generally increasing YoY, including a 15.65% YoY increase in copper production. Benefiting from the YoY rise in selling prices of all products, the company's main operating indicators exceeded expectations, achieving a good start to the year. As of the reporting date, the company was selected for the third consecutive time in the "S&P Global Sustainability Yearbook (China Edition) 2025," becoming one of the four Chinese companies in the metals and mining industry. The company's ESG performance continues to lead the industry, supporting sustainable development. CMOC announced on April 21 that, approved by its investment committee, it will acquire all issued and outstanding common shares of the Canadian publicly listed firm Lumina Gold (TSXV:LUM) through an overseas entity in an all-cash transaction, with a total price of approximately 581 million Canadian dollars. Lumina Gold is a precious and base metal exploration company listed on the TSX Venture Exchange, headquartered in Vancouver, and holds 100% of the Cangrejos gold mine project in El Oro Province, southwestern Ecuador. As the core asset of the transaction, Cangrejos is a large-scale primary gold mine project in Ecuador, completing a pre-feasibility study in 2023. Based on the pre-feasibility report, Cangrejos has a resource of 1.376 billion mt, with an average gold grade of 0.46 g/mt, containing 638 mt of gold; reserves of 659 million mt, with an average gold grade of 0.55 g/mt, containing 359 mt of gold. The future mine life is expected to be 26 years. The acquisition price translates to 1.27 Canadian dollars per share, a 41% premium to its latest closing price on April 17. Meanwhile, CMOC signed a subscription agreement with Lumina to issue $20 million in convertible bonds to meet the future operational needs of the Cangrejos gold mine project. The two parties began in-depth contact in H2 last year, and after long-term exclusive friendly negotiations, they finally reached the acquisition agreement. Currently, the agreement has received voting support from 52.3% of Lumina's shareholders, and the subsequent process will proceed according to local public acquisition procedures. CMOC's announcement on the evening of April 8 regarding its operating performance from January to March 2025 showed that the company seized favorable market opportunities to stabilize and increase production, with the output of its main products copper, cobalt, and niobium increasing by 15.65%, 20.68%, and 4.39% YoY, respectively. Benefiting from the YoY rise in selling prices of all products, the company's main operating indicators exceeded expectations, achieving a good start to the year. CMOC stated that 2025 is a critical year for achieving strategic goals and high-quality development. The company continues to accelerate expansion projects to maximize resource utilization value, laying a solid foundation for new leaps. CMOC's previously released 2024 annual report showed that the company's revenue exceeded 200 billion yuan for the first time, reaching 213.029 billion yuan, up 14.37% YoY; net profit attributable to the parent company exceeded 10 billion yuan for the first time, reaching 13.532 billion yuan, up 64.03% YoY; non-GAAP net profit attributable to the parent company was 13.119 billion yuan, up 110.48% YoY; and earnings per share were 0.63 yuan, up 65.79% YoY. CMOC's annual report showed that in 2024, the company's production of main products such as copper, cobalt, niobium, and phosphate fertiliser all hit record highs. Among them, annual copper production reached 650,200 mt, up 55% YoY, making it one of the top ten global copper producers for the first time. According to institutional estimates, CMOC's new mineral copper production in 2024 accounted for nearly 60% of the global increase. In other mineral products, CMOC produced 114,200 mt of cobalt, 10,024 mt of niobium, 1.18 million mt of phosphate fertiliser, 8,288 mt of tungsten, and 15,396 mt of molybdenum in 2024, maintaining its leading position in the industry. CMOC also announced its 2025 operating plan in its 2024 interim report. According to the guidance for the production of main products and physical trade volume in the company's mining and trade business segments in 2025, CMOC plans to produce 600,000-660,000 mt of copper, 100,000-120,000 mt of cobalt, and 12,000-15,000 mt of molybdenum. Central China Securities released a research report on April 15, giving CMOC an "overweight" rating. The reasons for the rating include: 1) TFM and KFM exploration work continues to advance, and copper mines are preparing for a new round of expansion; 2) the company achieved a good start in Q1, with main operating indicators exceeding expectations; 3) the period expense ratio decreased, and cash flow levels improved. Risk warnings: copper and cobalt prices fall short of expectations, project expansion and construction speed fall short of expectations, and risks of overseas policy changes. Kaiyuan Securities released a research report on April 11, giving CMOC a "buy" rating. The reasons for the rating include: 1) the company released its Q1 2025 production report, with copper and cobalt production increasing YoY; 2) the company's 2024 performance hit a record high, with core products exceeding growth expectations; 3) TFM and KFM copper-cobalt mines reached full production and standards, actively exploring for reserve increases. Risk warnings: raw material price fluctuation risks; project progress falls short of expectations; policy change risks.