Metals Australia Ltd (ASX:MLS) Research Update – September 2025

Arrowhead is updating its coverage on Metals Australia Ltd (“Metals Australia” or “the Company”) with a fair value bracket of A$0.071 – A$0.087 (Share Price on September 16, 2025: A$0.022) based on the Discounted Cash Flow (DCF) and Relative Valuation (RV) methodologies.

Report Highlights:

• Metals Australia is an Australian mineral exploration and early-stage development company. The Company holds a portfolio of diverse projects in Canada and Australia, with exposure to a range of critical minerals – graphite, nickel, vanadium, gold, silver, copper, zinc, titanium, and iron. The Company is listed on the Australian Stock Exchange under the ticker ASX: MLS.
• The Company holds four key projects – the Lac Carheil Graphite Project (Flagship Project), the Corvette River Project, the Warrego East Copper-Gold Project, and the Manindi Vanadium-Titanium-Magnetite (VTM) Project.
• On August 19, 2025, the Company released an updated MRE for its flagship Lac Carheil Graphite Project, reporting a JORC- and NI 43-101-compliant Mineral Resource of 50.0 Mt @ 10.2% TGC for 5.1 Mt of contained graphite, comprising 24.8 Mt indicated at 11.3% TGC and 25.2 Mt inferred at 9.1% TGC.
• Additionally, the Company also completed an RPEEE test in August 2025, confirming the entire 50.0 Mt resource is within a single, viable open-pit shell. The study also showed a reduced strip ratio (from 5.6 to 2.3) and a higher recovery rate (from 86.3% to 96.7%), supporting stronger project economics and long-term development potential.
• On September 11, 2025, Metals Australia announced progress on its Battery Anode Material plant design, confirming a preferred site at Sept-Îles and the completion of metallurgical test work, which achieved 99.99% fixed carbon purity with a 72% yield. The company also outlined a PEA design for 75 kilotonne per annum concentrate processing capacity.
• The Company is preparing further resource drilling at the Manindi VTM Project following successful metallurgical tests, which produced two commercial-grade concentrates with a combined recovery exceeding 65%. The project includes three granted Mining Leases and hosts a JORC-compliant Zinc-Copper-Silver Mineral Resource of 1.08 Mt @ 6.52% Zn, 0.26% Cu, and 3.19 g/t Ag.
• Metals Australia has commenced a 3,000m drilling program at the Warrego East Project. At the Corvette River Project, the Company also conducted trenching, which confirmed broad mineralisation across key zones and reinforced earlier high-grade rock chip results.
• The Company is well-positioned to benefit from the increasing demand for graphite driven by lithium-ion batteries and the broader energy transition through its Quebec-based Lac Carheil Graphite Project. Its location also provides access to the North American market amid increasing efforts by the U.S. government to localise critical mineral supply chains and Canada’s Critical Minerals Strategy, which targets five graphite mines and five downstream anode facilities by 2040.