Cokal (CKA) investor relations material

Management and market overview 2025

• 2025 was marked by soft steel demand and pricing pressures, but project execution and infrastructure delivery continued, with mining operations restarting after a ten-month suspension and domestic deliveries resuming under a new Tier 2 contractor.

• Gradual recovery in low-volatile hard coking coal prices and resumed domestic sales signal improving conditions, with cautious optimism for stronger demand in 2026.

• The metallurgical coal market is expected to tighten from 2026 due to constrained supply and increased demand from India and China, with prices forecasted to rise to $200–225/t.

• Indian steel production is growing at ~9% annually, driving met coal demand, while China maintains high blast furnace utilization and strong import needs.

Key operational highlights 2025

• BBM shipped 14,472t of coal to domestic markets as of Q3 2025, with in-house mining bridging contractor gaps and a new mining contractor, HML, mobilized for ramp-up.

• Magazine warehouse construction is over 85% complete, with drill and blast operations set to start by year-end to boost overburden removal.

• Coal sales resumed after a market-driven pause, with improved pricing and terms through active marketing and new domestic end-user relationships.

• Infrastructure upgrades include completion of the Mohing Bridge, jetty expansions, and haul-road improvements, with PT Petrosea appointed for major road upgrades.

• Progress on TBAR and BBM underground mining licensing continues, with regulatory and technical milestones achieved.

Strategic projects and expansion plans 2026

• BBM targets a ramp-up to 0.4+ Mt saleable production in 2026, with a near-term goal of 2.0Mtpa and permitted capacity up to 6.0Mtpa; current product is 100% LVHCC.

• Fleet expansion and logistics upgrades are underway to support increased production, with additional excavators and trucks being deployed.

• Underground mining at BBM Pit 1 is being developed in partnership with CBI, with CBI funding all development and operating costs in exchange for a revenue share.

• TBAR project, contiguous to BBM, has secured exploration permits and environmental approvals, with drilling and land acquisition planned for 2026.

• Infrastructure developments include new access roads, expanded jetty facilities, and near-pit support facilities to accommodate production growth.