Research notes

Solid 2Q26 delivery. Cracow continues its strong performance and Tritton operated broadly to plan. Our earnings forecasts and valuation have been upgraded to reflect the company’s improved earnings outlook for the remainder of FY26 in the current copper and gold price environment. We maintain an ACCUMULATE rating with a A$0.70ps TP (previously A$0.60ps).

RMS reported its 2Q26 result following its pre-release update on 8 January, delivering production of 45.6koz at an AISC of A$1,977/oz. RMS remains on track to meet FY26 guidance of 185–205koz at an AISC of A$1,700–A$1,900/oz, with YTD production now at 100.6koz at an AISC of A$1,901/oz. Lower production reflects the ongoing tapering of Cue open pit head grades, partially offset by higher-grade feed from Penny (9.8g/t Au). Importantly, development at Dalgaranga has now accessed the high-grade Never Never orebody, with initial development ore stockpiled (16kt at 3.5g/t Au), providing a positive lead indicator for grade uplift into coming quarters. We upgrade our target price to A$5.50ps (previously A$4.50) and move to ACCUMULATE (was BUY). The upgrade is a function of our updated precious metals price deck.

12 month target price reduced 16 cps to $4.58, in response to mild forecast traffic and revenue adjustments, update to spot AUDEUR and AUDUSD, and assumed one year extension of the temporary supplemental tax in France into 2026. HOLD retained, given c.1% total potential return at current prices (including c.8% cash yield based on 40 cps DPS guidance).

MEK delivered its 2Q26 operating result as the Murchison Gold Project continues to ramp up. Gold production increased 28% quarter on quarter to 9.1koz Au and was in-line with MorgansF of 9.3koz Au. Ounce production was underpinned by a mill head grade of 3.3g/t Au, ~10% above MorgansF assumptions; however, this grade outperformance is partially offsetting lower-than-expected throughput. Looking ahead, improvements in mill throughput, driven by underground production remain key to maintaining alignment with PFS forecasts We maintain our BUY rating, price target A$0.33ps (previously A$0.33ps) and update our precious metals price deck.

M7T posted its 2Q26 cashflow report, reporting a breakeven operating cashflow following marked improvements in cash collection and a streamlined expense position through normalised billing and lower staff costs. ARR remained stable at A$23.0m, while CARR declined to A$26.1m following the known VHA and Trinity headwinds, partially offset by the first Flamingo Architecture customer win and growth from existing clients. Execution momentum strengthened, including positive RSNA-generated leads, improved eUnity KLAS scores, and cost-outs across the organisation. Positive update and M7T appears seeded for good growth opportunities into FY27. No changes to forecasts or target price and our Buy recommendation remains.

MX1 posted a solid 2Q26 cash flow report. Highlights included a capital raise which has taken the funding question off the table and receipt of the largest Rover Plus order to date. Key catalysts to focus on include: receipt of additional Rover sales orders; commencement of Head CT human imaging trial; and monetisation of non-core security assets. We have made no changes to our forecasts or valuation. We maintain our SPECULATIVE BUY recommendation and believe 2026 will be a transformational year for MX1.

WHC delivered a substantial beat versus Visible Alpha consensus and MorgansF in 2Q, with managed ROM production reaching 11 Mt, up 21% on 1Q. Strong 2Q production reduces execution risk in 2H and has positioned WHC to take advantage of current higher hard-coking coal prices. FY26 ROM production and coal sales forecasts have been upgraded to the upper half of guidance. We have made material upgrades to Revenue, EBITDA & NPAT. We rate WHC a HOLD (previously ACCUMULATE) with a target of A$9.75ps (previously A$7.95ps).

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.