Lynas Rare Earths Limited

Welcome to Linus Rare Earths June quarterly results briefing. Following the formal presentation, there will be a Q&A session. Investors and analysts can ask live audio questions during today's call. To ask a live audio question, press the request to speak button at the top of the broadcast window. The broadcast will be replaced by the audio question screen. Use the dial-in number and access pin provided to ask your question via the phone. Alternatively, for those on a home or personal network, you can ask your question via the web by pressing Join Queue. If prompted, select Allow in the pop-up to grant access to your microphone. If you have any issues using the platform, dial-in details can also be found on the homepage under Asking Audio Questions. Press the Documents icon to see today's files and platform instructions. Select the document to open it. You can still listen to the meeting while you read. I will now hand over to Linus.

Good morning and welcome to the Linus Rare Earths Investor Briefing for the quarter ending June 2026. Today's briefing will be presented by Paul LaRue, Interim CEO, and joining Paul on the briefing are Garden Sturtzenegger, CFO, Chris Jenny, VP Sales and Market Development, Daniel Havis, VP Strategy and Investor Relations, and Sarah Leonard, General Counsel and Company Secretary. I'll now hand over to Paul Leroux. Please go ahead, Paul.

Thank you, Jen. Good morning, everyone. My name is Paul Leroux. And as you probably know, I replaced Manala Kaz as interim CEO, following her retirement in June 30th. I'm pleased to share with you my analysis of our performance in this June quarter 26. And of course, I will then try my best to answer your questions, if any. So during this quarter, the market continued to be strong and all the customers I reconnected with since I took this new position indicated a higher than expected growth of magnet demand. raising their concerns for security of supply and supporting, of course, quite healthy price level. So, that's a great situation to be in and this market situation benefited Linus and we achieved a record 98% dollar a kilogram average selling price through the quarter. This performance is the result of a favorable market environment, of course, but also improved offer from Lioness, in particular with the sales of Disposium and Terbium, and fast premium obtained by the team in recognition for reliability. This favorable situation will continue as we finalize the qualification of our newly launched Samarians and move from qualification into commercial contracts. I'm actually in Korea, and following this call, I will head to the signing ceremony, celebrating the new partnership between GS Link and Linus. This agreement includes a $50 million contribution by Linus in the 3,000-ton magnet factory that GS Link will build in Malaysia, as well, of course, as a 10-year real supply contract. Some of you know my attachment to Korea where I enjoyed seven wonderful years and I look forward to further development in this dynamic country surprisingly called modern country which is not very obvious when you work here Anyway, this is an important move by Linus and one more step in the development of our Linus 2030 strategy supporting downstream industry development outside China. On the operations side, I would like to first start with safety because we are very pleased to continue operating safely on our three sites, as demonstrated by the decrease in our last time injury frequency rate, which went from 2 to 0.9 end of the year, so that's a Very good achievements and we're looking forward for further improvement of the situation that is already a very good performance level, safety-wise. On production, I have to say that our production performance was clearly not as good as expected, was impacted by the quality variation of our concentrate as we were mining into transition zone. These variations were impacting the productivity of cracking leaching in both Kalgoorlie and Kwantan, therefore reducing the feedstock, the feed flow to the solvent extraction and therefore the total production. So that explains what has been very frustrating. It has mobilized all the teams together from the three sides and the R&D, and led to a step change in our expertise, including solutions to vary our process, parameters, and sequence, upstream and downstream, to adjust to our quality valuations. So, again, we are disappointed, but we get out of this much stronger, individually and collectively, as everyone has now a deep understanding of the process from mine to BigBug. and how each process step influenced the others. On the positive note, the production of DY and terbium was higher than expected. This includes part of the whip. If you remember last quarter, we explained that we had a low production because we had some whip, but in fact, beyond catching on the whip, our recovery has improved. and that's a very good sign and should continue as we start the ESA meal during this July quarter. Last but not least, and it's quite important, reflective of the improvement of the team in Kalgoorlie, Kalgoorlie has started a new process, a continuous carbonation process, and they did that faster than it takes to write a report, so that's a That's to me a very, very important change, reflecting the improvement of the calculative, the process calculative in the expertise, and that is something that makes me quite confident for future. Project-wise, we just focus on the heavy waste operations since expansion in Mount World is almost finished. We just need to finish the tail end pound, number four. On the HRE project in the quarter, we have reviewed the project so as to allow us to go for a stage, product by product, execution of the project. So you remember, we produced this project in May 25, Terbium in June 25, Samarium in March 26, And now we changed the schedule so that we could reduce Levelinium early fiscal year 28, for the Northern Hemisphere, the summer 27. Yttrium early calendar year 28. And Eutychium, the last one, will be probably around April 28th. So that is very important because we continue to see a very strong demand for every single element that this project will deliver. And so it's very important to be able to produce, to execute and start supplying the market step by step and not wait until the full product is finished. In parallel with that, we have a lot of detailed technical discussions with specific customers and that discussions led to some change in equipment in order for us to match with specific targets specifically very low level of non-rare impurities and even in some cases managing the physical characteristics of the product such as very narrow particle size distribution so this modification combined with now identified source of all equipments outside China you know that we can't buy anymore anything and it took a while for us to really identify contractors who could actually deliver all the equipment needed so now it's done and this all modification together led to an increase of our capex to $294 million plus free capex so it's a so well controlled and precisely defined capex and again what is very important is first we are in control and second we managed to anticipate and start to deliver on this specific product all through the project rather than waiting to the end so all in all this quarter had its shares of challenges and successes but all together this has led Linus improving our cash position by $138 million to $129 million, which is a great feeling and a good place to be at a moment of market opportunities. So that would be my summary of this quarter. We don't make forward statements, but we feel pretty confident for the quarter we are entering and I will take questions now.

If you have not yet joined the live audio queue, please do so now. To hear from as many people as possible, we request that you ask one question at a time. If you have more questions, please rejoin the queue. I will introduce each caller by name and ask you to go ahead. You will then hear a beep indicating your microphone is live. And our first question today comes from Austin Young from Macquarie. Please go ahead.

Good morning Paul and team. Thank you for the update. Good to see that you made some progress on the Kalgoorlie front despite the all quality challenges in the modern world. I'm just keen to understand, looking forward, given the improved understanding of the whole body and also improvement at the second elevation facility, how should I think about the production run rate at the Pagodik for the next 12 months?

Thank you. Well, I cannot project exact numbers. What I can tell you is that Pagodik is in a much better shape today than it was at least three months ago, and this It's a bit unfair for them that these quality variations that we missed at the start, to be honest, impacting their productivity. Otherwise, they would have delivered a very good quarter. So moving forward for Calgary, I think we can be pretty confident. And what is really very important, I tried to explain that, but it's not only, I mean, all the variation comes from ore and transition zones. So it was frustrating, but we have developed very, very complex new process parameters, including cracking, itching, and inflotations to address these variations. So that makes me quite comfortable for the future because everything depends on people's expertise, and I see that growing very fast.

Thank you. Thank you. The next question comes from Chen Zhang from Bank of America. Please go ahead.

Good morning, Paul. Thank you for taking my question. Just a follow-up on your production and operational performance. So NDPR production for this quarter looks like the second weakest quarter of the last five quarters. I understand the quarter-over-quarter variation, you're all concerned I'm not sure I heard everything you cut off quite a number of pounds.

Maybe you asked a question about Mountwell capacity. Mountwell had... So Mountwell capacity, basically, this quarter was impacted because we had some problems on the water recycling unit. This has been fixed. Unfortunately, I would say because of the problem downstream, Mountwell's supply was big enough for the downstream. But now I think not well is really set up for for the original design capacity The only step that is remaining for us is to start the is a meal to know Grinding very fine. So liberating more rears or improving the recovery race. And that's we had a few Super done Very short, but normally we should establish that an empty from this water in that and And that will be for Mountwell, so not too much concern on my side on the Mountwell. I just want to emphasize a little bit, because it's a good example. The expansion came with a lot of automation, including, you know, now you have a fixed crusher. And so that makes life of everyone way easier. but we realized that in the past they had a mobile crusher and so the people in charge were really discriminating ore and blending them nicely to have a constant feed on the flotation system. Of course, once it's all optimized, you realize that people discriminate a lot less the ore. That's something that we missed, to be honest, in the design, so we addressed that as well. But Montreal is really in very good shape and except for the TSF that will finish this quarter or next quarter, everything is done and working pretty well.

Right. Thank you. Thanks, Paul. I'm not too bad. Thanks. Thank you.

Thank you. The next question comes from Paul Young from Goldman Sachs. Please go ahead.

Yeah, morning, Paul. Paul, can I just dig into Mount World a little bit more, just the challenges in the quarter? I mean, you know, I visited the site in March and the commissioning was going extremely well and, you know, there's clear upside on the, it might be on the base case. 1.3 million tonnes throughput. And just to get through the mass balance, it clearly can produce over a couple hundred thousand tonnes of concentrate and you haven't had to run Kalgoorlie cracking and leaching really at all because the cracking and leaching facility in Malaysia can do 100,000 tonnes of imports. So the mass balance stacks up that Kalgoorlie hasn't really needed to run and to this point probably more a statement really and the commissioning seems like it's mostly completed on all the key pricing units at Kalgoorlie, so that's good news. But just to talk through my world, I mean, I understand you, you know, looking at the circuit, you had a mineral sizer there. You've now put in a more fixed crusher. You've had clearly some challenges with the particle size distribution. being fed into the sag milling circuit. When I was there the sag mill was running really with low steel charge and more of an autogenous mode and you've obviously had some variability on feed size distribution and different oil types coming through. So it sounds that this is all pretty simple. So just to confirm again just to provide more colour that it really was around size distribution to the float circuit, challenges with the gang and, you know, and cylindrics that are floating with the monazite and then, you know, basically impacting concentrate grade and also particle size distribution in the concentrate. I know that's along with a sort of technical, you know, sort of statement or question, but it sounds as though these are all minor just commissioning issues. Can I, I guess, can I just confirm that?

Yeah, so, anyway, I like techniques. At the end of the day, I think techniques matter. It's, Thank you very much, Paul. But, no, the variation of quality, I mean, we are beyond some difficulty. It was not the big challenge on the new meal, which were related to particle size, etc. But here it's more a variation on composition. So you have variation of enzyme, calcium, carbonate, phosphates, and So it's the combination of these impurities combined, so it's not one versus the other. That's why it was a bit complex. It's an equation with four different variables, which are sulfate, magnesium, calcium, and carbonate. And depending on the respective level of one versus the other, then you have different performance in both the flotation, but most important in cracking. this impacts the dynamic of the reaction when you mix with sulfuric acid your reaction goes too fast and so you have the viscosity becomes terrible so your product doesn't flow fast enough and so that impacts your product leaking, cracking so it's more the composition and that is the result of transition zone when you have dolomite, apatite, monazite all coming together you need to control that and be able to react both on modifying your cracking process or sequence and modifying the flotation process so as to secure a dynamic of the reaction in the cracking that is under control and not leading to viscous slurries. I don't know if I answered your question, Paul.

No, no, sorry, I thought you were more pressing limonone and saprolyte consistently rather than the appetite, but I think, yeah, it just shows you that obviously your body's transitioning. Thanks, Bob.

Thank you. The next question comes from Rahul Anand from Morgan Stanley. Please go ahead.

Oh, hi, Paul. Thank you for the call. Look, I just had one on the CapEx increase that you had. Obviously, the plant was greenlit, I think, on the 29th of October. That was already after the restrictions came in from a China perspective. And I'm aware, given past understanding, that there were contingency plants also in place to source from alternate suppliers. I guess my question is, you know, it's taken us a fair bit of time to get to this updated CapEx estimate. Is it purely just a sourcing issue here in terms of contingency? Has the scope changed? I know you've talked a bit about purity of product, but if you can provide perhaps a bit more detail as to what exactly has changed in terms of the flow sheet, so to speak, that has led to the increase in the size that it is.

So you understand that I will not go into too much detail because I don't want to help the work of our competitors. But there are two elements. One, you're right, the Chinese restrictions, especially for Linus, were clear from quite a while. Now, to review where you can buy outside China every single equipment that goes in a factory it's complex and sometimes you simply don't have manufacturers existing outside China and so it takes time for developing these kind of contractors that can build for instance a good furnace specific reactors, mixer settlers it was a bit of a challenge for us to really develop to the level of performance we want. It took a while and then additional cost to make sure that we would have a secure non-channel supply chain for the equipment. So that's one part. The other one is, and that was very good that the sales marketing team went way ahead with end customers because the specs of You know, I used to work in this field 15 years ago in a different company, but the specs have changed over time and there are more constraints. So that, at the end of the day, we made the decision, for instance, to add the purification space for chemical products and to also have water purification, so demineralized water systems. so as to make sure that we will maintain the level and achieve the low level of impurities, of non-raised impurities in the finished product that is required by those specific customers. So there are two elements. One is really to go through all the non-Chinese equipment, including sometimes, in a few cases, developing the technology for some contractors. And the other was really... going far into securing the purity and the particle size of our finished products up to the targeted specifications of our key customers for these new products. So that are the two elements that led to an increase of CAPEX. But I have to say, now this CAPEX is fully reviewed. What I said is a class 3, so it means that we have gone through all the ASAP, etc. The next step is construction, and we are in construction.

Thank you. I'll cue back in.

Thank you. The next question comes from Jonathan Sharp from J.P. Morgan. Please go ahead.

Hi, Paul and team. Just a question on China controls. So they suspended their October 2025 export controls and they potentially come back in on the 10th of November this year. So just with those controls potentially returning, can you just tell me what are the potential consequences for the industry? How are customers preparing? Just interested in your thoughts on those potential controls.

Well, we'll see what is announced in November this year. Definitely, well, what I can see from our side and what I can see when meeting customers, the level of concern about accessing specific rears from China is very high. I know that in China some race producers are trying to lobby and say, well, we need more business. But I think it's a very important geopolitical game being played. And I foresee this restriction to be further strengthened. And therefore, our job is to grow as fast as possible additional capability, additional products, additional heavy areas in particular. And all of these, for liners, whether it's official or not, anyway, liners cannot source any single material, expertise, whatever, from China, and we don't. So that's a challenge ahead of us. But I think we are in a market environment where you need to go very fast because China is still in control of the majority of the resupply, and that's a major challenge for the rest of the world.

Okay, thank you. The next question comes from Daniel Morgan from Baron Joey. Please go ahead.

Excuse me, hi Paul. Just back on Mount Weld, when do you expect Mount Weld to be back up to full operational run rates, i.e. do you still have a lot of transition or in the feed in the months ahead or have changes being made to the operation such that it's delivering the feed the downstream needs currently.

Thank you. We are fully done now on what we know. So this frustrating experience is in the past and I will go into it next month but we are always careful to not underestimate the issues, but to me Mount Weld is well on track now. It's time to go back in.

Yeah, and just a quick follow-up, if I may. I have observed in the Kalgoorlie region there's been several grid instability issues. Other mining firms have referenced it during the quarter. This was not referenced in your release today. Obviously, if Mount Weld upstream is not operating at full tilt. It's not giving feed to the downstream at full tilt. But if Matt World were delivering, would the bottleneck move to Kalgoorlie and power? And if that's right, what's being done about power supply for Kalgoorlie?

Very good question. It's true that the power supply is not up to where we want it to be. This being said, we had a very difficult situation back in October to 25 until January or February this year. Since then, the situation has improved. There were some modifications made on the western power site. And, okay, it's not as good as we wish. Let's say we are staying within one power failure per month, which is not what we wish to have. What we have is, I would say, manageable, given the excess of capacity we have between Quantan and Kalgoorlie. We're still waiting whether we should go for an off-grid solution or not. At the moment, it's not the Real emergency, I think. Power has improved. Not to where you could dream of, but enough.

Okay, thank you, Paul, for your perspective.

And I hope I won't be made wrong in a few hours next week. Keep just one power failure per month. That would be nice.

Thank you. The next question comes from Mitch Ryan from Jefferies. Please go ahead.

Morning Paul, thank you for your time. My question relates to Mount Weld. Obviously you're blending ore from mineralogy for now and that seems to be under control but are there any physical modifications that the Mount Weld circuit will require in the mid to long term as you progress through the ore bottom to account for that ore mineralogy? to meet the required concentrate grade and quality?

Yes. In the long term, we know that we'll have variations of ore, but that's not imminent. And we're working on this to probably... Well, we have plenty of options process-wise. And so we are addressing that now. We have time to prepare. So not for transition, but for really addressing mining some specific ore. And so this is under progress at the moment. And we work on it and get ready for it probably later in this, well, not even this fiscal year, but the year after. Yeah.

Okay, and sorry, is that when you will encounter the problems or is that when you will communicate the solution to the market?

Yeah, we will, of course.

Sorry, beginning to answer my question. Is that when the problem is there?

No, we will not wait for the problem to happen. This happened this last quarter. So it was a problem with the transition zone. but when it comes to different kinds of ore to be mined and processed, we have time to really address that. We have different options that we are studying, and once we are done with it, we'll communicate on that. But that will be anticipated, not in a reactive mode like this water.

Okay, thank you. The next question comes from Matthew Hope from Ord Minute. Please go ahead.

Yeah, thanks. I just wanted to know if there was any change in the plans for the Heavy Rare Earths separation plant, because you spoke about when you would add Godolium and Yttrium and Lutetium, when they would be coming out, but my understanding was the Heavy Rare Earths refinery was also supposed to replace the current facilities for Dysprosium, Serbium and Sumerium, but you've given no timeline for those, so are they still going to be, are the old facilities going to be replaced with the new? and if so what's the timeline on the new enlarged production for those elements?

So the dysprosium terbium and I understand the information didn't pass very well but I don't know why. We today are established and we could produce 240 tons of dysprosium if we had it in the feedstock so Displosion Turbium production is established and will not be modified from then on. It's just a matter of us changing the feed with a higher content of Displosion Turbium in the feed for which we have different options and we are working on them. For samarium, we have a temporary situation where we produce 400 tons a year of samarium. That's a temporary situation that we started in March this year. For the full production of samarium, which will go to 1,100 tons or more, that will be an asset that is under construction, and that will come beginning of calendar year 28. In between, you will have Gado in the beginning of fiscal year 28, so sometime between August, September 27. And then, as I said, Yttrium later. And finally, the Stammarium and the Lutetium. Sorry, I did not include in my presentation. The Stammarium increased to over 1,100 tons from the current 400 tons.

Thank you.

Thank you. The next question is from Neil Dingman from William Blair. Please go ahead.

Thank you. Can you hear me? Yep.

My question is around the JAS contract.

Could you talk about, you know, will that be a continued strategy? Will that be one of several joint ventures that you would connect more on the downstream side?

What is the strategy going forward beyond just the JAS contract that was announced? Well, we are not a magnet maker. we are a miner and a chemical processing player so we will not manage magnet making at Linus this being said we support magnet makers because we need more new magnet makers coming up and so this partnership with JSLink was a very good opportunity for us We are, well, 50 million is not peanuts, but it's not the majority of the capital they need to build this factory. And they will manage this factory by themselves and the business. We are supporting them in our position, which is basically supply of rare earths, and most likely very soon the recycling of their swath. That's how we position ourselves. And we'll continue doing that, supporting downstream industry, including metal making and magnet making but not necessarily managing those assets especially magnet to me is a step where the expertise required are very different from what we have so that's definitely not a step I'm not a supporter of the famous mind to magnet theory we have enough work in our positioning Understood.

So with most of those, would you continue to make investments in equity, or how do you use these structures going forward?

Thank you. It's just when needed. If it's needed, we can look at it. I think there are many projects where the key point is security of supply, and we do discuss that. GS Link was a particular case where some capital injection was needed to help them take it off. That's what we did. Thank you.

The next question is from Chen Jiang from Bank of America. Please go ahead.

Hello, I don't hear the Chen Chen's second question, by the way.

It appears Chen is having some technical issues, so we'll move to the next question, which is from Rahul Anand at Morgan Stanley.

Hi, thanks for the opportunity again. My questions were answered, but I would love to perhaps test the Mount Weld thesis a bit more I know you've talked about transitional as being the key driver for the variability in production that you've had and obviously you have to marry up three different plants or three different sites to produce what you produce so it's complex but how do we think about the plan from here? I mean I know you're not here to provide guidance but in terms of the mine plan and when you think all these three can be humming along again and how do you kind of think about the medium term planning what type of actions do you need to do now do you need to drill more define the ore body better or do you have the right definition but not the right planning in place I just want to get a bit more sense on the mining side thanks so all of this except that we already did so we

we launched additional mining drilling to better characterize the ore that is mined. So that's already launched from end of May. So to have a better accuracy on what we mine. Second, most important is to... So we are a lot more... Segregative in saltine ores, and so blending and controlling back again the blend of ore that is feeding to the flotation. But the most important to me are the improvements that have been made in variations in the flotation circuit and the cracking leaching sequence. that allow us to adjust and to maintain productivity despite these variations. So that's the reason why, well, I don't want to project, but we feel much more comfortable and secured now that we were.

Thank you.

The next question is from Paul Young at Goldman Sachs. Please go ahead.

Hi again Paul. A few further questions on the JS Link Agreement please. Can you share any details around the additional capital requirements from your side? I understand the $50 million is going into into the equity part for JS Link. It will go into funding part of their share of the facility. But can you share any sort of total capital numbers for the project and potentially when it could start production? And then further to that, is the supply contract at NDPR going to be at the US $110 a kilo? Is that the base case?

Well, we just don't think that... I would enjoy it. I will ask Chris Cheney to answer that question because he negotiated all the contract with JSLink.

Thanks, Paul. And hi, Paul. Yeah, obviously the commercial arrangements with JSLink are confidential. The $50 million obviously is not the full cap hedge required for the site. But again, JSLink is probably better positioned to answer the title cost and in terms of the pricing in the off-take, as you know, 12-year off-take agreement, again, that's commercially sensitive, so we really can't go into those details. But the great thing is that GSNC has commenced acquiring the site, which is very close to the Quentin facility, and are busy ordering equipment and progressing that project.

Okay, thanks. Maybe just a quick follow-up, Chris. I know that JSLink are planning on building a facility in the U.S. They have an agreement with POSCO, and they have a site and agreement that's already sort of locked away in the U.S. Is that a facility you might get involved with and supply in the future? Is that sort of part of the larger, the bigger plan here?

Potentially, Paul, yeah, but obviously that's subject to ongoing discussions with JSLink. So watch this space.

And I can add that probably there will be a press release from GS Link today or tomorrow. So we should let them disclose what they wish to disclose in terms of CapEx and planning for execution. But be aware that Koreans go very fast. The most common word in Korean is pali pali, which means quick, quick. and so as aggressive as their schedule may look like, they may be even better than this.

Okay. Paul, can I have one more follow-up, please, just on magnets? That is around the Japanese magnet producers. Is there anything you can share with us around... what the four magnet producers in Japan and their strategies are, considering a few of them actually have facilities in China. We've got the November deadline coming on the China export controls, which are more sort of somewhat set in stone. And so, are you seeing any signs of the four Japanese magnet producers looking to actually get on with and actually expand their facilities in Japan?

Well, I haven't gone to Japan for a while, but they are for a little from a distance. And again, Chris was in Japan last week, so he can add to my point. What I know is especially some magnet makers are really concerned in Japan about their challenge of sourcing heavy rails from China. And so that is the reason why we liners need to accelerate as fast as possible and increasing our production of the White Serbian for them.

Chris, there was any element you wanted to share from your meeting last week? No, great discussions in Japan. I think that the key is that the JARE offtake and availability agreement that we've agreed with Japan is critical to supporting those Japanese magna makers with a committed volume. of light and heavy rare earths, and that really obviously then supports Japanese industry with the volumes they need. So, as Paul said, massive focus on ramping our heavy rare earth capacity to meet those demands, but there is some protection for Japan through that, shall we? Off take.

All right, thank you. Appreciate it.

Thank you. We will try going back to Chen Jiang from Bank of America. Please go ahead. Hi, Chen, please go ahead if you can hear us.

Hey, can you hear me?

Yep.

Okay, thank you. Sorry about the tech issue. I apologize. Thank you for taking up my follow-up question. So just on the Heavy Rare Earths expansion project, thanks for providing the commencement, I mean, the timing for E-Train, for Gadolion, but how about these pros and turbos like last year in your release you have 250 DY and 50 metric ton per annum of TB when are we going to say that the expansion I'm not talking about the current heavywares it's referring to your expansion DY and TB if you can provide timing and color on that thank you so they said

if we had 250 tons of dysplasium in our feedstock we would produce 250 tons of pure dysplasium so what was probably misunderstood is that initially we thought of going step by step and supply a small portion of the white sodium but actually we modified and the efficiency of the SX is such that we realized that we could produce tomorrow 250 tons of DY and 50 tons of Terbium if only we had this in the feedstock. So processing wise everything is ready. The key question is how and when we will increase the DY Terbium content in our feedstock. And for that we are evaluating different options and it's a bit too early for me to to disclose our plan, but that's the emergency for us. The solution is only if we start no more processing for the White Terbium.

Right. That's very helpful. So the constraint of producing the heavy Rare Earths expansion, the capacity is coming from upstream, which is the phase talk, not your downstream is kind of already completed.

For this Prosium Terbium.

Yes. Okay. Okay. Thank you.

For this Prosium Terbium. The next question comes from Jonathan Sharp from JP Morgan. Please go ahead.

Yeah, thanks for the follow-up question. My questions have been answered, but I'll just ask one on, you know, you're now producing DYTB, you're going to be producing Sumerium and the other three Rare Earth products shortly soon, but I'm just interested in your thoughts, Paul, on where the value creation is with these. Do you see there's direct product revenue, margins? I get the feeling that there's quite a bit of value there with strategic customer relationships. Can you just talk to that for us and where you see the value?

Well, you can see the numbers. We make... There is quite some value in supplying separated heavies rather than doing what we were doing in the past, which was selling unseparated heavy compounds to separation companies in China. So that is where the margin lies for us. And I think for as long as, and I expect this to last for quite a while, as long as those elements are in shortage, outside China, you will have lots of value in supplying separated rares. Dysprosium, Turgum, even Gado, Yttrium, they are essential elements because currently they are supplied only by China. And so that's where the value lies.

Okay, and just to follow up, I mean, is there... extra NDPR that can be sold with those contracts?

We bundle this program thirdly with NDPR, to be speaking. Okay? If you look at the reason why you don't see more magnetic capacity popping up outside China, and I've been for certain with that for the last 16 years. Until recently, one of the key questions was people were not certain of the demand growth and not certain that OEM would actually would be serious about securing at least part of the source in outside China. Now this point is gone. So it's a matter of getting the expertise because it is complex and Chinese are really the best in that. So you need to match the best competition technology from China. And the second is accessing NDPR DUI Terbium. And currently the most critical is to secure DUI Terbium because we have NDPR. We continue growing our production of NDPR. I explained, I shared with you that I was a little bit Frustrated for this quarter, but we know where to go and how to get there. But we need to get more divided turbines. And the market needs us to produce more divided turbines. That's essential.

Okay. Thank you. The next question is from Mitch Ryan at Jefferies. Please go ahead.

Follow-up. Thanks for the follow-up. I'm interested in the increased capex of the Heavy Rare Earth project, which is obviously to allow increased security and physical characteristics for your customers. Does this mean you'll be producing individual SKUs of each heavy for each customer? And then how should we think about that with regards to operating costs?

That's a good question. It varies. I would say, I'll take an example, DY-terbium-4 magnet, that's a standard spec. Everyone buys the same. Dysplasium can also serve MLCC, which is microcapacitors, which is a very important segment that not many people talk about, but here definitely you need to control your particle size, particle shape of your of your dysprosium. So you have a different grade, and because you have a different grade, it comes with different price as well. And the same applies for Yttrium Gadot, where you have a very standard 3N spec, and especially Gadot, when it comes as a contributor to magnet making, this is quite standard. But if you go into a specific alloys, for instance, and coating then you really need to address purity and the shape of it again it's different grades for several of these heavies more than in their lives and they go together with different prices okay

So, yeah, I missed that. So you'll potentially be able to attract a bigger premium by providing these more bespoke products to your clients. Is that the correct way to think about it?

Yeah, absolutely. And that's the reason why we decided to move ahead and improve the setup and install some equipment so that we can do that.

Okay. Thank you very much. The next question comes from Matthew Hope from Ord Minute. Please go ahead.

I just had another question on JS Link. I was just wondering, with the Korea plants, when do you expect to begin supplying that? And the other question around JS Link is, they will presumably need some disposing turbines for their magnets. Do you have any capability to supply that over to Korea, or is it all taken due to the chair contact, is it all taken by Japan?

No, we have agreements with Japan, and we have agreements with GS3. So, their factory in Malaysia, basically, let's say we start, and you know it's a challenge to start a new Magda factory, in 28, I guess, calendar year. And so we'll start supplying them with the necessary equipment NDPR and Dwight Sovian as they move up and as I said as they grow we will also finalize and execute options for us to produce higher Dwight Sovian ore you may remember and this is one among other options but we have areas in Mountwell with pretty high development

I think you've dropped out.

Hi there, Paul. You seem to have dropped your audio.

Hello? You can't hear me?

It is quite faint. If you could just try moving closer.

Okay, but I have my... Can you hear me? Can you hear me?

Can you hear me better? That's much better, thank you.

Okay. Sorry, so I don't know what you heard from my answer.

It started to drop out when I think you were saying there were high areas of DYCB in Mount Weldon and then sort of lost it after that.

But that's it. That's one of the options. We need to increase our content in the feedstock and one option is to accelerate the mining activity in Moscow, but there are other options as well.

Okay, I guess what I was a bit interested in was... Sorry, you're dropping out again, but I was just interested in the contract with J.S. Link. I understood you also had a contract to supply their Korean land. which is currently ramping up as I understand it. So I was wondering when that feedstock was due to start and whether you actually had any Dysprosium and Terbium to supply them given that the JARE contract has first dibs on all your Dysprosium and Terbium if I understood that correctly.

Their Korean line is a small line so we're not talking about big numbers for supply there. Thank you. The next question comes from Daniel Morgan from Barren Jelly.

Please go ahead.

Hi, Paul. Just a question on CapEx for the heavies plants. You said that the budget has increased to 294 mil. I imagine that there was some that was spent in FY26. How much is left to go from this point in time or in FY27 and beyond of that 294? Thank you. 294.

Because, cash-wise, I'm not 100% sure. I may ask Gardens for help. To my view, we would have committed at the moment around 25% of it. And cash-wise, probably a lot will be spent in the beginning of 2018. But Melvin's might have more precise numbers in front of you.

Yeah, I think they will put, obviously, something in the annual report. But cash-wise, pretty little has been spent so far. Probably on the commitment side, we are probably 20% in. but that will grow pretty quickly over the next month. So at the moment it's really, really active on the procurement side. But you will not have – there will not be a lot of cash flow in the past financial year. It's really heavily in 27 and then 28.

Okay, and just to clarify, this is the major capital spending commitment that the company is making right now in terms of projects that nothing materialized or is sustaining, is that correct? Correct. Okay. Thank you so much, Paul, and go down.

Thank you. That is the end of the Q&A. I'll now hand back to Paul for closing remarks.

Okay, thank you very much, everyone. That was my first presentation of the quarterly results. I hope you got answers to your questions. And we'll have a more complete review together for the yearly results announcement, which are being completed at the moment, so it will be next month. And I look forward to a continuous discussion with all of you sometime soon. Thank you.

That concludes today's call. Thank you for joining us. You may now log out.