Research notes

2Q26 result beat expectations on production and costs. Balance sheet de-risked following LG Energy Solution’s election to convert its US$250m convertible notes into equity, removing debt and strengthening flexibility despite dilution. Maintain TRIM with much of the near-term upside factored into its share price.

Undoubtedly the highlight of the December quarter was Comet securing a binding agreement to acquire JV partner and operator Santos’ (STO) stake in the Mahalo Gas Project on attractive metrics. NAIF debt process has now progressed into the due diligence phase. Upstream FEED is nearing completion, with pipeline FEED also progressing. We maintain a SPECULATIVE BUY rating and A$0.25 target price, but see a material increase in upside risk being unlocked by this acquisition once funded.

2Q26 result beat expectations across all divisions. Lithium optionality increases in the current pricing environment, with potential to increase volumes at Mt Marion and Wodgina and re-start Bald Hill. Deleveraging has accelerated. Net debt now sits at A$4.9bn (A$5.4bn last quarter). Maintain HOLD. Valuation appears full at 7x ND/EBITDA but strong execution, balance sheet momentum and a supportive commodity backdrop underpins ongoing exposure.

Progress on Omega’s Canyon appraisal project, and a strategic investment in Taroom peer Elixir Energy, have increased upside risks and optionality. Acquired 19.43% equity stake in Elixir Energy (EXR), funded via placements. Transformational appraisal year with wells planned for both OMA’s eastern flank and EXR’s western flank. Canyon project progressing, appraisal well help mature project concepts. Maintain SPECULATIVE BUY rating with a A$0.56 target price.

IPD posted its 2Q26 result which noted that its US installed base growth remains elusive with constraints around hospital budgets being called out as still an issue. We have taken a knife to our short-term forecasts which were too optimistic. As a result, our DCF-based valuation has reduced to A$0.10 (was A$0.13). We maintain a SPECULATIVE BUY recommendation, however, recognise that cash reserves are becoming tight and subsequent quarters will need to see the pipeline converted and cost controls maintained.

MAP released its 2Q26 results showing strong momentum in core testing and a clear line of sight to reach its guided target of 24k global testing volumes by EOFY. Core testing maintains a high-growth trajectory as AU progresses up the adoption curve and UK adoption builds strongly, even as headline revenues soften due to the planned wind-down of legacy products. Cost base continues to structurally reset with improved operating leverage and clearer visibility on MAP’s breakeven objective for FY26. No changes to forecasts or valuation at this stage and happy to wait to see the February 1H report for more granular financials and comparisons to our forecasts, particularly around the expense base. TP unchanged at A$0.29 and we reiterate our Speculative Buy recommendation.

We initiate coverage on TNC following a period of successful exploration led growth, project planning and renewed corporate strategy which importantly avoids early production commitments and debt-funded development, materially reducing financial risk relative to prior operating models employed by previous management. TNC’s strategy is structured around three pillars: develop, grow, discover with Mt Oxide providing district-scale exploration leverage through the Vero, Aquila and other emerging discoveries, and Cloncurry offering optionality around near-term development and cashflow generation. We initiate coverage with a SPECULATIVE BUY and a target price of A$1.20ps.

MSV delivered another strong quarter, reporting EBITDA of $9.6m, up 71% on the pcp. EBITDA margins expanded to ~20% from ~12% in 2Q25, showing MSV has delivered a step-change in performance in 1H26. 2Q also delivered a substantial strengthening of the balance sheet, with an $8.1m shift from net debt of $0.9m to a net cash position of $7.2m. FY26 looks to be a strong year for earnings, higher EBITDA margins, robust free cash flow and an anticipated resumption of dividends. We maintain our rating of SPECULATIVE BUY on MSV with a target price of A$0.50ps (up from A$0.45ps).

SLD’s Evoke® System is the world’s first and only closed-loop spinal cord stimulation (SCS) device, using real-time neural feedback to deliver superior, lasting pain relief while reducing therapy burden compared to incumbent open-loop systems. SLD remains early in its US rollout but is fast attacking a cUS$3bn global SCS market, driven by salesforce expansion, increasing centre density, and forthcoming paddle lead availability. Despite accelerating commercial transaction and a clear pathway to margin expansion, SLD trades at a steep discount to neuromodulation peers, positioning the stock as a high-growth, execution-driven re-rating opportunity. We initiate coverage with a SPECULATIVE BUY and a target price of A$3.07.

TTX continues to achieve its commercial, clinical and regulatory milestones in a timely manner. The key focus for us is the FDA approvals (expected in 1H27) for the dental (Tegenix) and orthopedic (TegenEOS) application. TTX’s 2Q26 result was in line with our expectations. We have made no changes to our full year forecasts or valuation. We maintain a SPECULATIVE BUY recommendation on TTX.