Q1 2024 Endeavour Mining PLC Earnings Call

[music].

Okay.

Operator: Good day, and thank you for standing by. Welcome to Endeavour Mining's first quarter 2024 results webcast. At this time, all participants are in listen-only mode.

Speaker Change: Good day, and thank you for standing by when it comes to Endeavour Mining's first quarter 'twenty to 'twenty four results webcast. At this time all participants are in listen only mode.

Operator: After the management presentation, there will be a question and answer session. So for those who wish to ask a question, please dial in to the phone lines for questions. Please note that due to time constraints, we will be prioritizing questions from covering analysts. Today's conference call is being recorded.

Speaker Change: After management's presentation, there will be a question and answer session.

Speaker Change: So for those who wish to ask a question. Please dial in to the phone lines for questions. Please.

Speaker Change: Please note that due to time constraints, we will be prioritizing questions from covering analyst.

Speaker Change: Today's conference call is being recorded and a transcript of the call will be available on Endeavour's website tomorrow.

Operator: Any transcript of the call will be available on Endeavour's website tomorrow. I would now like to turn the conference over to Endeavour's Vice President, Investor Relations, Jack Garman. Discover EDSA.

Speaker Change: I would now like to turn the conference over to Endeavour's, Vice President Investor Relations Jack Kauffman. Please go ahead Sir.

Jack Garman: Hello everyone, and welcome to Endeavour's Q1 Results webcast. Before we start, please note our usual disclaimer. On the call today, I'm joined by Ian Cockerill, our CEO; Guy Young, our CFO; and Mark Morcombe, our COO. Today's call will follow our usual format. Ian will first go through the highlights of our Q1 2024 results. Guy will present the financials, and Mark will walk you through our operating results by mine, before handing back to Ian for his closing remarks. We will then open the line up. I will now hand over to Ian.

Speaker Change: Okay.

Jack Kauffman: Hello, everyone and welcome to Endeavour Q1 results webcast.

Jack Kauffman: Before we start please note our usual disclaimer.

Jack Kauffman: On the call today I'm joined by Tim Coffey.

Jack Kauffman: Guy <unk>, our CFO and Mark welcome.

Jack Kauffman: Today's call followed by unusual format.

Tim Coffey: Cost go through the highlights of our Q1 2024 results.

Tim Coffey: Got to present, the financials and Mark will walk you through our operating results by mine before handing back to Exa's closing remark.

Speaker Change: We will then open the lineup for questions.

Speaker Change: I will now hand over to Ian.

Ian David Cockerill: Thanks very much, Jack. Hello to everyone who's on the call here today, and thank you for joining us. Now I've now been the Chief Executive Officer of Endeavour for just over a quarter, and I'm actually pleased today to be able to report that, whilst this has been a challenging operating quarter, we are still continuing to deliver against our key objectives on the operational side. We remain on track to achieve our full year 2024 guidance, and whilst production was lower in Q1 as previously guided, which drove all in sustaining costs higher, operating performance was always strongly weighted towards H2 due to stronger performances that we are anticipating from Hyundai as well as the two organic growth projects coming online.

Ian: Thanks, very much Jack Hello to everyone who's on the call here today and thank you for joining us.

Ian: I'd now being the Chief Executive officer of endeavor for just over a quarter.

Ian: Im actually pleased today to be able to report that once this has been a challenging operating quarter, we are still continuing to deliver against our key objectives on.

Ian: On the operational side.

Ian: We remain on track to achieve our full year 2020 full guidance.

Ian: Production was lower in Q1 as previously guided.

Ian: <unk> drove all in sustaining costs higher operating performance was always strongly weighted towards H two due to stronger performances that we are anticipating from Hyundai as well as fee.

Ian: Organic growth projects coming online.

Ian David Cockerill: Now we've been focused on delivering these growth projects as they will continue to improve the quality of our portfolio and drive higher production at lower costs going forward. On Sunday, we successfully delivered the first gold at the Sabadala-Massawa-Biox section, which was on budget and on schedule, and that's only two years after we launched construction. We're also making good progress on our La Figue development project, where we've already started dry commissioning, and we're on track to deliver first gold in late Q2, which is a full quarter ahead of the anticipated schedule.

Ian: Now we've been focused on delivering these growth projects that will continue to improve the quality of our portfolio and drive higher production at lower costs going forward.

Ian: Sunday, we successfully delivered the first gold at the <unk>.

Ian: <unk> Bionics section, which is on budget and on schedule. That's only two years after we launched construction.

Ian: And we're also making good progress.

Ian: <unk> development project, where we have already started dry commissioning and we're on track to deliver first gold in late Q2, which is a full quarter ahead of the anticipated schedule.

Ian David Cockerill: In addition, our exploration program continues to provide us with a strong platform for future growth, and while we're going to prioritize resource-to-reserve conversion at the moment, we've also delivered strong results at the Asafo deposit on the Tenda Iguala property during Q1. And here, we continue to see the potential for the endowment of this huge cornerstone asset.

Ian: In addition.

Ian: <unk> program continues to provide us with a strong platform for future growth.

Ian: We're going to prioritize resource to reserve conversion at the moment. We're also we've also delivered strong results.

Ian: Through deposit on a tender gorilla property during Q1.

Ian: And here, we continue to see the potential for being downloaded this.

Ian: This huge cornerstone asset it just keeps on growing very pleasingly.

Ian David Cockerill: During the quarter, we continued to invest in growth, exploration, and shareholder returns. We committed over $235 million, and our net debt position increased to, as anticipated, in the order of $831 million, while our leverage remained healthy, well below the one-time net debt to adjusted EBITDA. And as our growth projects ramp up, it's certainly going to be, we will be able to quickly delever our financial position back to well below a 0.5 times target leverage ratio.

Ian: During the quarter, we continued to invest in growth exploration and shareholder returns, we committed to over $235 million.

Ian: Debt position increased to as anticipated in the order of $831 million, while our leverage remained healthy well below the one times net debt to adjusted EBITDA.

Ian: And as our growth projects ramp up.

Ian: Suddenly going to be we will be able to quickly de lever our financial position back to well below.

Ian: Five times target.

Ian: Leverage ratio.

Ian David Cockerill: Meanwhile, we've made more progress on our ESG initiatives as we focus on those items that protect the places where we operate and promote sustainable socio-economic growth in our host communities. These will also undoubtedly support the long-term success of our business.

Ian: Meanwhile.

Ian: We've made more progress on our ESG initiatives as we focus on those items that particular places, where we operate and promote sustainable socio economic growth in our host communities.

Ian: This will also undoubtedly support the long term success.

Ian David Cockerill: Over the next few slides, I'll touch upon our progress this quarter before handing over to the team for a more detailed summary. But just moving on to production and all in sustaining costs. If we look, you can see our quarterly production and our all-in sustaining cost trend. And production in the first quarter was 219,000 ounces. That was down 61,000 ounces from the previous quarter, while the all-in sustaining cost was up quite markedly to $11.86 per ounce.

Ian: As our business.

Ian: For the next few slides I'll touch upon our progress this quarter before handing over to the team for a more detailed summary.

Speaker Change: But just moving on to production.

Speaker Change: And all in sustaining cost.

Speaker Change: If we look you can see that our quarterly production.

Speaker Change: And all in sustaining cost trend in production in the first quarter was 219000 ounces and that was down 61000 ounces from the previous quarter, while naturally the all in sustaining cost was up quite markedly to 11 $86 per ounce.

Ian David Cockerill: Now, we'd always anticipated lower production this quarter, and certainly, that's flowed through into the higher all-in sustaining cost for the quarter, but not too dissimilar to that which we saw in Q1 of the 2023 calendar year. The decrease in production was driven primarily by lower production at Hyundai, principally because of the strike, the unscheduled, or the illegal strike which took place, as well as lower production coming out of Sabadala at Masawa.

Speaker Change: Always anticipated lower production this quarter and certainly that's flowed through into the higher all in sustaining cost for the quarter, but not too dissimilar to that which we saw in Q1.

Speaker Change: 2023 calendar year.

Speaker Change: The decrease in production was driven primarily by lower production at Hyundai.

Speaker Change: Principally because of fee.

Speaker Change: Strike the unscheduled.

Speaker Change: The illegal strike, which took place as well as lower production coming out of the $7 at Massawa.

Ian David Cockerill: At Hyundai, we mined a lower grade Carey West pit, whilst we focused on stripping at the higher grade Carey Pump and Vindaloon main pits that will provide access to higher grade ores for the second half of this year. And that was always part of our natural sort of plan for the year. At Sabadala Masawa, we mined lower average grades as we accelerated mining in lower grade areas of the Sabadala Pit as it advances towards the end of its economic life, and there's a reason for wanting to get that out of the way, and Mark will go into a little bit more detail about what that pit is going to be used for.

Speaker Change: As Jose, we mined lower grade Kari West pit once we focused on stripping at the high grade Kari pump Vindaloo main pits that will provide access to high grade ores through the second half of this year and that was always part of a natural sort of plan for the year.

Speaker Change: It suffered dollar massawa, we mined lower average grades as we accelerated mining in lower grade areas of the $7 pit as it advances towards the end of its economic life.

Speaker Change: A reason for wanting to get back.

Speaker Change: The way so mark will go into a bit more detail about what that picture is going to be useful.

Ian David Cockerill: In addition to the expected lower production, as previously disclosed, as I said, we did have that 11-day stoppage of mining and processing at Hyundai in late January due to the subcontractor lead strike. That certainly impacted our production as well as our costs. The increase in all sustaining costs during the quarter largely is a result of a decrease in production, and I'll highlight that over the next couple of slides. Looking at the next slide, you can see the quarter-on-quarter changes in our group's production. As I just mentioned, production was lower at Hyundai and Sabudala Masala, while both Itty and Mana delivered stronger quarter-on-quarter production.

Mark: In addition to the expected lower production as previously disclosed as I said, we did have that 11 day stoppage to mining and processing at Hyundai in late January due to the subcontractor, let strikes that certainly impacted our production as well.

Speaker Change: Costs.

Speaker Change: The increase in all sustaining costs during the quarter largely as a result of a decrease in production and I'll highlight that over the next couple of slides.

Speaker Change: Looking at the next slide you can see the.

Speaker Change: Quarter over quarter changes in group production.

Speaker Change: As I just mentioned production was lower at Hyundai and Cebu dial in Massawa, while both mana delivered stronger quarter over quarter production.

Ian David Cockerill: Production at Iti increased and is expected to be H1-weighted due to the greater availability of high-grade ore in the first half of this year, while in Q1, Mana had its strongest quarter of production in the last 12 months due to the continued ramp-up of underground mining activities, specifically in the Wona underground deposit. On slide 9, you can see the quarter-on-quarter changes in our all-in-sustaining program. While costs went up during Q1, the main driver of the cost increase was obviously the lower gold sales, and that accounted for approximately $217 per ounce higher All-in sustaining costs quarter on quarter.

Speaker Change: Production at ETE.

Speaker Change: Increased and is expected to be <unk> weighted due to the greater availability of high grade ore in the first half of this year, while in Q1 mono had its strongest quarter of production in the last 12 months due to the continued ramp up of underground mining activities.

Speaker Change: Specifically in the Warner underground deposit.

Speaker Change: On slide nine you can see the quarter on quarter changes in our all in sustaining costs.

Speaker Change: While cost went up during Q1, the main driver of the cost increases obviously, the lower gold sales and that accounted for approximately $217 per ounce higher all in sustaining cost quarter on quarter.

Ian David Cockerill: As I've already noted, we certainly expect our gold production to improve significantly in H2, and that will automatically drive down the all-in-sustaining cost in the latter part of the year. Furthermore, improvements in our mining costs partially offset the slight increases in processing costs. Really, that was due to increased power costs as we had to generate a lot more of our own power and slightly harder rock that we were processing. Also, sustaining capital and royalties were up this year as a result of the higher gold price.

Speaker Change: Already noted, we certainly expect our gold production to improve significantly in age too and that will automatically drive down the all in sustaining cost in the latter part of the year.

Speaker Change: Improvements in our mining costs, partially offset the slight increases in processing costs.

Speaker Change: Really that was a Q2 increased power costs as we have to generate a lot of around power and slightly harder rock that we were processing also sustaining capital and the royalties were up this year as a result of the higher gold price.

Ian David Cockerill: On slide 10, I'd just like to reiterate that safety is of huge importance, and while we're proud to say that our lost time injury frequency rate certainly remains at an industry-leading 0.11, we're very saddened to report in February, and I did report this at the year-end results, that sadly, a contractor colleague had passed away in an incident at a mine in Burkina Faso. And I think it's fair to say that this is absolutely a clear reminder of the need for us to retain vigilance, irrespective of how good we think our safety performance is. We can never ever lose sight of the fact that we need to really focus on our health and safety.

Speaker Change: On slide 10.

Speaker Change: I'd just like to reiterate that.

Speaker Change: Safety is.

Speaker Change: Huge importance to us.

Speaker Change: We're proud to say that.

Speaker Change: Lost time injury frequency rate certainly remains at an industry, leading zero per month, we were very saddened to report in February.

Speaker Change: This would be the year end results sadly contracted colleagues had passed away and an incident at our Mana mine.

Speaker Change: Assessor.

Speaker Change: And I think it's fair to say that this is absolutely a clear reminder of the need for us to retain vigilance irrespective of how good we think as safety performances, we can never ever at least sciences effect that we need to really focusing on health and safety.

Ian David Cockerill: However, in terms of production and cost, we are on track to meet our full-year production and all-in sustaining cost guidance, again because our performance, as planned, is very much weighted towards the second half of the year. Moving on to Salvador Masawa's expansion on slide 11, we're delighted to announce that we delivered our first gold from the Gravity Circuit on the 18th of April and, pleasingly, our first gold from the Biox Circuit that was actually on Sunday over the weekend on the 28th of April.

Speaker Change: However in terms of production and cost that we are on track to meet our full year production and all in sustaining cost guidance again, because our performance as planned very much weighted towards the second half of the year.

Speaker Change: Moving onto seven down on Massawa expansion on slide 11, we are delighted to announce that we've delivered our first gold from the gravity circuit on the 18th of April.

Speaker Change: And Pleasingly first go from a biopsy circuit that was actually on Sunday.

Speaker Change: On the 28th April.

Ian David Cockerill: And this is definitely going to help improve our portfolio quality and certainly has upgraded that mine's ability to remain a top-tier operation. We're particularly proud of this achievement because we built the expansion project in only two years, and we delivered the project on budget and on time. We did that with over 3.5 million man-hours of work and without any sustaining lost time in general. Now, we're now shifting our focus to the ramp-up at this particular project.

Speaker Change: And this is definitely going to help improve our portfolio quality and certainly has upgraded that mine's ability to remain a top tier operation.

Speaker Change: We are particularly proud of this achievement because having built the expansion project in only two years and we've delivered the project on budget and on schedule and we did that with over three and a half million man hours worked without any sustaining lost time injury.

Speaker Change: We are now shifting our focus to the ramp up.

Ian David Cockerill: We're on track to deliver commercial production in Q2 and then get nameplate capacity from the Biox plant of 1.2 million tonnes per annum in Q3, which should give us a full nameplate quarter of production in Q4. Again, this will support stronger group production and cost performance throughout the year. [inaudible] We started to dry commission the front end of the plant, and we're making good progress. [inaudible] We anticipate that we're going to be delivering first gold towards the end of Q2, which is a full quarter ahead of the previously announced schedule.

Speaker Change: This particular project are on track to deliver commercial production.

Speaker Change: Quarter, two and then get nameplate capacity from the box plants of $1 2 million tonnes per annum in Q3, which should give us a full nameplate.

Speaker Change: Quarter of production in Q4, again supporting stronger group production and cost performance.

Speaker Change: Throughout the year.

Speaker Change: At our <unk> project.

Speaker Change: We started to dry commission.

Speaker Change: <unk>.

Speaker Change: Dry commissioning of the front end of the plant and we're making good progress towards the production of first gold again construction is on budget and pleasingly ahead of schedule in this case.

Speaker Change: We anticipate that we're going to be delivering first gold.

Speaker Change: Towards the end of Q2, which is a full quarter.

Speaker Change: As previously announced schedule.

Ian David Cockerill: Once completed, Seagate is going to be another cornerstone asset for the company with an envisaged annual production of more than 200,000 ounces of gold over its 13-year life and at a low all-in sustaining cost of at or around $900 per ounce.

Speaker Change: Once completed.

Speaker Change: C. J is going to be another cornerstone asset for the company with an envisage annual production of more than 200000 ounces gold over its 30 year life and has a low all in sustaining costs of around $900 per ounce.

Ian David Cockerill: As you can see, we're certainly pleased that the construction activities of our two growth projects are now largely de-risked, and we have very good visibility towards increased production at lower oil and sustaining costs and significantly lower growth capex once this phase of growth is completed, which will lead to a turnaround in our net debt position towards the second half of this year. On slide 13, I just want to give you a brief update on our ongoing exploration efforts.

Speaker Change: Yes.

Speaker Change: As you can see we're certainly pleased with the construction activities to growth projects.

Speaker Change: Now largely derisked and we have very good visibility towards increased production at lower all in sustaining costs and significantly lower gross capex. Once this phase of growth is completed and that will lead to the turnaround in our net debt position towards fee.

Speaker Change: The second half of this year.

Speaker Change: On slide 13, just to give you a brief update.

Speaker Change: On our ongoing exploration effort.

Ian David Cockerill: During Q1, we launched our $65 million 2024 exploration program, but in Q1, we actually spent $25 million as we accelerated the drill program ahead of the wet season later in the year. And we're prioritizing the conversion of resources to reserves at our key assets, as well as identifying new resources at existing operations, particularly at Sabadala Masawa, which is very much a target-rich project. And it's certainly the largest exploration focus for this year, and we're going to continue with extra drilling at Asafo at the Tanda Iguala property. Now, as we said previously, we've already discovered over 10 million ounces since 2021.

Speaker Change: June Q1, we launched $65 million 2024 exploration program, but in Q1, we actually spent $25 million.

Speaker Change: As we accelerated the drill program ahead of the wet season later on in the year.

Speaker Change: We are prioritizing the conversion of resources to reserves.

Speaker Change: Our key assets as well as identifying new resources at existing operations, particularly at <unk>, and Lasalle, which is very much a target rich.

Speaker Change: Project.

Speaker Change: Certainly the largest exploration focus for this year and we're going to continue.

Speaker Change: With extra drilling at <unk> at the return to a greater property.

Speaker Change: Now as we said previously we've already discovered over 10 million ounces since 2021.

Ian David Cockerill: And we're thrilled that we remain on track to discover our target of between 12 and 17 million ounces of indicated resource by 2025. And we're going to prioritize the cornerstone assets, as well as tender for Iguala, to make sure that we deliver on the balance of that previously stated target. Looking in a little bit more detail at a soft... We have already defined a four and a half million ounce resource at a grade of two grams a ton. It's one of the best discoveries in West Africa for the last decade.

Speaker Change: We're thrilled that we remain on track to discover a.

Speaker Change: Target of between 12, and 17 million ounces of indicated resource by 2025, and we're going to prioritize the cornerstone assets as well as tender griller to make sure that we deliver on the balances that previously stated target.

Speaker Change: Looking in a little bit more detail the sources.

Speaker Change: We have defined already a four and a half million announced results at a grade of two grams a tonne. It's one of the best discoveries in West Africa for the last decade rediscovered debt free.

Ian David Cockerill: We discovered that for $11 an ounce within a two-year period, and I'm very pleased to say that in Q1, we had more post-drilling results at the deposit. We've identified additional mineralization along strike of the existing resources towards the northwest as well as the southeast, so expanding in both directions along its strike. We've successfully extended the mineralized trend by over 10% from 3.3 km to 3.7 km. And I think these results continue to demonstrate the prospectivity of this particular area, which we continue to aggressively explore whilst the mineralization remains open in most directions. On the wider Tand-Egoela property, we've also received some encouraging drilling results, particularly at Pallor Trend 2, a satellite target, which is in close proximity to the southward and the southwere. We've delineated an 1,800 meter mineralized trend.

Speaker Change: $11, an ounce within a two year period.

Speaker Change: I am very pleased to say that in Q1, we had more positive drilling results at the deposit.

Speaker Change: We've identified additional mineralization along strike of the existing resources towards the northwest as well as the southeast expanding in both directions along strike.

Speaker Change: Excess free we've extended the mineralized trend by over 10% from three three to four months is to three seven currencies and I think these results continue to demonstrate prospectively. This particular area, which we continue to aggressively explore wassa mineralization remains open in most direct.

Speaker Change: <unk>.

Speaker Change: On the wide attendance gorilla property. We've also received some encouraging drilling results, particularly at powertrain to satellite target, which is in close proximity to software in the southwest.

Speaker Change: We delineated in 2800 meter mineralized trend, we're going to be doing more to trying to expand and extend this mineralized envelope over the remainder of the year.

Ian David Cockerill: We're going to be doing more work to try to expand and extend this mineralized envelope over the remainder of the year. We're convinced that the Asafo project will not only be another cornerstone asset for Endeavour as we advance the PFS work this year, but we're going to continue to explore the 20km long mineralized corridor, and we believe that we'll be able to discover even more. Turning now to slide 15.

Speaker Change: And we're convinced that the a software project.

Speaker Change: Only be another cornerstone asset for endeavor as.

Speaker Change: As we advanced the PFS work this year.

Speaker Change: We're going to continue to explore the 20 cohort alone mineralized.

Speaker Change: Corridor, and we believe that we will be able to discover even more resources.

Speaker Change: Turning now to slide 15.

Ian David Cockerill: You can see that despite our continued investments in organic growth, shelter returns, and exploration, our business continues to have low leverage with the ability to fund organic growth whilst delivering strong shelter returns. At the end of the first quarter, we had $481 million in available liquidity. As our two growth projects ramp up in the second half of the year, we're going to begin to focus on debt reduction to further strengthen our financial position while still having the discipline to maintain a robust, shovel-ready return program.

Speaker Change: You can see that despite our continued investments in organic growth shareholder returns and exploration business.

Speaker Change: Business continues to have low leverage with the ability to fund organic growth, whilst delivering strong shareholder returns.

Speaker Change: At the end of the first quarter, we had $481 million in available liquidity.

Speaker Change: Two growth projects ramp up in the second half of the year, we're going to begin to focus on debt reduction to service strengthen our financial position, while still having the discipline to.

Speaker Change: Maintain a robust shareholder return program.

Ian David Cockerill: On slide 16, you can see the details of our shareholder return program. And since the introduction of this program in 2021, we have returned $916 million to shareholders through dividends and buybacks, which is equivalent to $211 for every ounce of gold that we've produced during that period. During the quarter, we paid out $100 million in dividends, completing the final payment in our existing shoulder return program.

Speaker Change: On Slide 16, you can see the details of our shareholder return program and.

Speaker Change: Since the introduction of this program in 'twenty, one we've returned $916 million to shareholders through dividends and buybacks, which is equivalent to $211 for every ounce of gold that we produced during that period.

Speaker Change: During the quarter, we paid out $100 million in dividends completing the final payment in our existing shareholder return program.

Ian David Cockerill: We also paid $30 million, and we spent $13 million in share buybacks during the period, continuing to demonstrate our commitment to paying supplemental shareholder returns, particularly when we see severe undervaluation in our stock, which clearly was the case in Q1. Now, we're well positioned to deliver increased shelter returns using a similar framework in the next Shelter Return Program, and we expect to outline details of that towards the middle of the year, maybe in the beginning or second half of the year, and we'll come back with more details to shelters as to what we're going to be doing. Before I hand over to Guy, just a quick word about ESG. In January, a non-exec director, Katya Lawson, was appointed in my place as chair of the board's ESG committee.

Speaker Change: We also paid $30 million.

Speaker Change: We spent $30 million.

Speaker Change: In shareholder and share buybacks.

Speaker Change: In the period.

Speaker Change: Continuing to demonstrate our commitment to paying supplemental shareholder returns, particularly when we see.

Speaker Change: Severe undervaluation in our stock, which clearly in Q1 was the case.

Speaker Change: Now, where we are well positioned to deliver increased shareholder returns using a similar framework.

Speaker Change: In the next shareholder return program and we expect to outline details of that.

Speaker Change: Towards the middle of the year, maybe in the beginning second half of the year and we will we'll come back with more details to shareholders as to what we're going to be doing.

Speaker Change: Before I hand over to Guy just a quick words about ESG.

Speaker Change: In January.

Speaker Change: Non exec director Catchier loosen.

Speaker Change: Was appointed in my place as chair of the Board's ESG Committee.

Ian David Cockerill: Responsible mining can have a huge positive socio-economic impact, particularly in developing and emerging economies such as West Africa. Under Katchi's guidance, I'm totally satisfied that we're going to continue to work to deliver sustainable value for all our stakeholders in line with the best DSG practices and make sure that we comply with good governance standards. And as you can see from the slide, our targets for 2024 remain ambitious, and they're aligned with our overall strategy to be a trusted partner.

Speaker Change: No responsible mining can have a huge positive socio economic impact, particularly in developing and emerging economies such as West Africa.

Speaker Change: And the catch his guidance.

Speaker Change: Im totally satisfied that we're going to continue to work to deliver sustainable value for all our stakeholders in line with the the best ESG practices and making sure that we comply with government standards.

Speaker Change: And as you can see from the slide our targets.

Speaker Change: Targets for 'twenty 'twenty four remain ambitious and they are aligned with our overall strategy to be a trusted partner and we look forward to reporting back on these initiatives to the course of the year ahead.

Ian David Cockerill: And we look forward to reporting back on these initiatives during the course of the year ahead. And with that introduction, let me hand you over to Guy, who will take you through the financial highlights. Guy, over to you.

Speaker Change: With that introduction, let me hand, you over to Guy who will take you through the financial highlights Guy over to you. Thanks, Tien Hello, everyone.

Guy F. Young: Thanks, Ian. As Ian already mentioned, our Q1 production was 219,000 oz, a 22% decline from Q4 last year due to lower production at Hyundai and Sabadala Massawa, while realized gold prices were 5% higher during the quarter. All in sustaining costs were higher during the quarter, largely due to lower production and gold sales.

Guy: As Ian already mentioned Q1 production was 219000 ounces or 22% decline from Q4 last year due to lower production at Hyundai and separate out on Massawa.

Guy: While realized gold prices were 5% higher during the quarter.

Guy: All in sustaining cost was higher during the quarter largely due to the lower production and gold sales.

Guy F. Young: Our adjusted EBITDA and operating cash flow before working capital also decreased, given the lower production at higher costs. However, adjusted net earnings were broadly in line with the last quarter, supported by lower income tax expenses in Q1 due to the timing of income and withholding tax payments through the year. On slide 20, looking at the quarter on quarter variations in a bit more detail, adjusted EBITDA was lower in Q1 2024 due to lower gold sales at higher all-in sustaining costs despite the increase in realized gold price. Consequently, our EBITDA margin has decreased, but it still remains at a healthy 45%. Moving on to slide 21,

Speaker Change: Our adjusted EBITDA and operating cash flow before working capital also decreased given the lower production at higher costs.

Speaker Change: Adjusted net earnings were broadly in line with the last quarter supported by lower income tax expenses in Q1 due to the timing of income and withholding tax payments through the year.

Speaker Change: On slide 20, looking at the quarter on quarter variations in a bit more detail adjusted EBITDA was lower in Q1 2024 due to the lower gold sales at higher all in sustaining cost despite the increase in realized gold price.

Speaker Change: Currently our EBITDA margin has decreased but still remains at a healthy 45%.

Guy F. Young: You can see that whilst we enjoyed a higher realized gold price in Q1, the lower production levels and higher costs offset, resulting in lower operating cash flows before working capital changes of $137 million or $0.56 per share. We expect this to improve significantly in the second half of the year as production increases and as our two high-return growth projects ramp up. On slide 22, we look at operating cash flow in a bit more detail.

Speaker Change: Yeah.

Speaker Change: Moving on to Slide 21, you can see that whilst we enjoyed a higher realized gold price in Q1, and lower production levels and higher costs offset this.

Speaker Change: Resulting in lower operating cash flows before working capital changes of $137 million or 50 56 cents per share.

Speaker Change: We expect this to improve significantly in the second half of the year as production increases and is up to high return growth projects ramp up.

Speaker Change: On slide 22, looking at operating cash flow in a bit more detail.

Guy F. Young: Realized gold prices increased by $96 per ounce from $1,945 to $2,041 per ounce in Q1, inclusive of gold hedges. However, this was more than offset by lower gold sales of 225,000 oz compared to 285,000 oz in the prior quarter, resulting in a decrease in quarter-on-quarter operating cash flows. Operating expenses increased due to higher processing costs at Hyundai, Sabudala Massawa, and Eti, but this is not a result of increased power costs.

Speaker Change: Realized gold prices increased by $96 per ounce from 1945 to $2041 per ounce in Q1 inclusive of gold hedges.

Speaker Change: This was more than offset by the lower gold sales of 225000 ounces compared to 285000 ounces in the prior quarter, resulting in the decrease in quarter on quarter operating cash flow.

Speaker Change: Operating expenses increased due to higher processing costs at Hyundai seven dollar Massawa entity.

Speaker Change: <unk> as a result of increased power costs are harder ore blend and ramp up costs associated with the re sign optimization initiatives respectively.

Guy F. Young: Harder or Blend, and Ramp-Up Costs Associated with the Re-Sign Optimization Initiative, respectively. However, this was slightly offset by lower income taxes paid due to the timing of withholding tax payments and payments at issue. An increase in the working capital outflow was driven by the timing of revenue receipts related to gold shipments. The build-up of VAT receivables, and the increase in stockpile inventory at Sabadol Masawa, Le Figue, and Etienne, resulting in a decrease in the quarter-on-course operating cash flow.

Speaker Change: This was slightly offset by lower income taxes paid due to the timing of withholding tax payments and payments at <unk>.

Speaker Change: An increase in the working capital outflow was driven by the timing of revenue receipts related to gold shipments to.

Speaker Change: The buildup of VIP receivables and.

Speaker Change: And the increase and stockpile inventory at $7 Massawa Sigue entity.

Speaker Change: <unk> in the decrease in the quarter on quarter operating cash flow.

Guy F. Young: Looking forward, we expect to see this working capital outflow start to unwind as VAT receipts are received at Sabadala Masawa and once the growth projects ramp up from Q2 and start to draw down on these stockpiles, thereby reducing our investment. Turning now to slide 23.

Speaker Change: Looking forward, we expect to see this working capital outflow start to unwind as that proceeds received $7 Massawa and once the growth projects ramp up from Q2 and start to draw down on the stockpiles, thereby reducing our inventory.

Speaker Change: Turning now to slide 23.

Guy F. Young: As previously forecasted, given the progress made on our growth projects during the quarter, our net debt position has increased to $831 million at the end of Q1. During the quarter, operating activities generated $55 million, while $188 million was invested in existing operations and growth projects, including $30 million of sustaining CapEx, $41 million of non-sustaining CapEx, and $99 million of growth CapEx. Financing activities were a net inflow of $88 million, as the drawdown of the company's RCF and Lafayette term loans more than offset the $100 million dividend to shareholders, $17 million of share buybacks, as well as financing fees, leases, and dividend payments to minorities. The group also incurred a loss of $12 million from foreign exchange measurement of cash from changes in the Euro to US dollar exchange rate.

Speaker Change: As previously forecasted given the progress made on our growth projects during the quarter. Our net debt position has increased to $831 million at the end of Q1.

Speaker Change: During the quarter operating activities generated $55 million $188 million was invested in the existing operations and the growth projects, including $30 million of sustaining capex $41 million of non sustaining capex and $99 million of growth capital.

Speaker Change: Financing activities were a net inflow of $88 million is the drawdown on the company's Rcs and Lafayette term loans more than offset the $100 million dividend to shareholders $17 million of share buybacks as well as financing fees leases and dividend payments to minorities.

Speaker Change: The group also incurred a loss of $12 million from foreign exchange measurements of cash.

Speaker Change: From changes in the Euro to U S dollar exchange rate.

Guy F. Young: Again, looking forward, with our two growth projects coming online this quarter, as 2024 progresses, we expect to quickly de-lever the balance sheet back to a leverage position below our 0.5 times target. If we move now to net earnings, net earnings from continuing operations were higher in Q1'24 than in Q4'23 due to the impact of impairments in the prior quarter, as well as lower tax expenses, lower other expenses, and lower losses on financial instruments during this quarter.

Speaker Change: Again looking forward without two growth projects coming online this quarter as 2024 progresses, we expect to quickly delever the balance sheet back to a leveraged position below <unk> five times target.

Speaker Change: If we move not to net earnings net earnings from continuing operations.

Speaker Change: We're higher in Q1 'twenty four than in Q4 23 due to the impact of impairments in the prior quarter as well as lower tax expenses lower other expenses and lower loss on financial instruments. During this quarter.

Guy F. Young: I'm going to avoid talking through every single line item but just focus on a few. Firstly, the loss on financial instruments in Q1 was principally composed of unrealized losses on gold collars and forward sales and foreign exchange losses.

Speaker Change: I'm going to avoid talking through every single line item, but just focus on a few.

Speaker Change: Firstly the loss on financial instruments in Q1 was principally composed of unrealized losses on gold colors and forward sales and foreign exchange losses.

Guy F. Young: It includes $11 million in realized losses on gold collars and Ford sales as the gold price increased during the quarter. Income Tax Expenses Decreased Due to Lower Recognized Withholding Tax, due to the timing of the local board approvals for cash upstreaming, plus a lower tax expense at Itty due to the timing of our provisional payment. Adjustments included unrealized losses on financial instruments related to gold collars and forward sales, and other expenses associated with the investigation into the former CEO, all of which were partially offset by the gain on sale of the ephema property and a loss on non-cash, tax, and other adjustments mainly related to the impact of foreign exchange re-measurements of the deferred tax balance. Adjusted net earnings were stable quarter-on-quarter as I'd now like to hand you over to Mark to take you through the operating performance. Mark?

Speaker Change: It includes $11 million in realized losses on gold colors Ford sales as the gold price increased during the quarter.

Speaker Change: Income tax expenses decreased due to lower recognized withholding taxes.

Speaker Change: Due to the timing of the local board approvals for cash up streaming.

Speaker Change: A lower tax expenses due.

Speaker Change: Due to the timing of our provisional payments.

Speaker Change: Adjustments included unrealized losses on financial instruments related to go colors forward sales and other expenses associated with the investigation on the former CEO all of which were partially offset by the gain on sale of the FEMA property.

Speaker Change: And the loss on noncash tax and other adjustments mainly related to the impact of foreign exchange remeasurement of deferred tax balances.

Speaker Change: Adjusted net earnings was stable quarter on quarter as lower gross earnings from mining operations were offset by lower income tax expenses.

Speaker Change: I would now like to hand, you over to Marc to take you through the operating performance Mark. Thank.

Mark Morcombe: Thank you, Guy, and hello to everyone. Before I move into our mine by mine detail, I want to talk briefly about our safety performance. We have maintained an industry-leading loss time injury frequency rate from continuing operations of 0.11 per million hours worked. But despite this strong safety performance, as Ian mentioned earlier, we were deeply saddened to report that a contractor colleague passed away in February as a result of injuries sustained in an incident that occurred during maintenance activities at the Manor Mine in Burkina Faso.

Marc: Thank you Guy and Hello to everyone.

Marc: Before I move into a mine by mine detail.

Marc: I want to talk briefly about our safety performance.

Marc: We have maintained an industry, leading loss time injury frequency rate from continuing operations of <unk>, one one per million hours worked.

Marc: Despite the strong safety performance as Ian mentioned earlier, we were deeply saddened to report that our contract to colleague passed away in February as a result of injuries sustained in an incident that occurred during maintenance activities at the <unk> mine in Burkina Faso.

Mark Morcombe: We have investigated the incident thoroughly, and we will continue to reiterate the importance of adherence to our procedures, supported by periodic reassessments and task observations as we continue to improve training and frontline supervision, as you can see on slide 27. Production in Q1 decreased by 61,000oz from Q4 2023, as production at Hunde and Sabadala Masawa was lowered due to mine sequencing, with both mines expected to deliver higher production in the second half of the year. Hyundai's production was also impacted by the 11-day strike in January that led to a temporary stoppage of mining and processing.

Marc: We have investigated the incident thoroughly and we will continue to reiterate the importance of adherence to a prestigious supported by periodic reassessment and task observations as we continued to improve training and frontline supervision.

Marc: As you can see on slide 27.

Marc: Production in quarter, one decreased by 61000 ounces from quarter four 2023 as production at <unk> was lower due to mine sequencing with both months expected to deliver higher production in the second half of the year.

Marc: <unk> production was also impacted by 11 days strike in January.

Marc: Led to a temporary stoppage to mining and processing.

Mark Morcombe: At the same time, all-in sustaining costs rose by $239 during the first quarter, largely due to lower levels of production, as lower mining costs largely offset increases in processing costs, sustaining, capital, and royalty. At a group level, we are on track to achieve full-year guidance, with improvements in performance at Hyundai and Sabadala Masala in the second half, coupled with the production ramp-up of our two growth projects, Sabadala Masawa and Le Figuet, which are expected to add incremental low-cost production to the group profile.

Marc: At the same time, all in sustaining cost rose by $239 during the first quarter.

Marc: Absolutely due to the low levels of production as lower mining costs, largely offset increases in processing costs sustaining capital and royalties.

Marc: At a group level, we are on track to achieve full year guidance with improvements in performance at Honda and <unk> in the second half.

Marc: Coupled with the production ramp up of our two growth projects <unk> and <unk>.

Marc: Which are expected to add incremental low cost production to the grade profile.

Mark Morcombe: I will now walk through each mine, starting with Sabadala Masawa on slide 28. Production decreased during the first quarter as we mined lower volumes of high-grade ore from the Sabadala Pit, resulting in lower overall head grades processed, as well as lower recoveries.

Marc: I will now walk through each one starting with <unk> on slide 28.

Marc: Production decreased during the first quarter as we mined lower volumes of higher grade ore from the $7 pit, resulting in lower overall head grades processed as well as lower recoveries.

Mark Morcombe: At the Sabadala Pit, we have been accelerating mining activities so that we have the option to backfill it with tailings next year, in line with our life of mine tailings management strategy. All of the material from the Sabadala and Nyakifiri pits is providing lower grade feed, which we are supplementing with some higher grade semi-refractory ore from the Massawa pits, resulting in a slightly lower overall recovery Through the year, we expect to mine a high proportion of high-grade ore from the Naica Fury, Sabadala, and Kiesta pits, as well as further high-grade ore from the Masawa Central Zone pits.

Marc: The $7 paid we've paid accelerating mining activities. So that we have the option to backfill it with tailings next year in line with our loss of mine tailings management strategy.

Mark Morcombe: Or from this Abdala Nike Fury pits are providing lower grade phase, which we are supplementing with some higher grade semi refractory ore from the massawa pit, resulting in slightly lower overall recoveries.

Marc: Through the year, we expect to mine a high proportion of high grade ore from Nokia theory, seven dollar MKS to pit as well as further high grade ore from the Massawa Central zone pit.

Mark Morcombe: As a result, we expect progressive improvements in performance. At the same time, we will continue to advance our $21 million dollar exploration program that is targeted to convert existing resources into reserves, as well as to identify new refractory and non-refractory resources to support the mine plans for both the whole ore leach and the sulphide treatment plants in the near term. Moving to slide 29, we are delighted to announce, on the 28th of April, that we've achieved first gold from the Sulphide Treatment Plant, with gold pours now completed from both the Gravity and BiOx circuits.

Mark Morcombe: As a result, we expect progressive improvements in performance.

Mark Morcombe: At the same time, we will continue to advance at $21 million exploration program that is targeted to convert existing resources into reserves.

Marc: As well as identifying new refractory and non refractory resources to support the mine plans for both as a whole all H and the sulfide treatment plans in the near term.

Mark Morcombe: Moving to slide 29, we are delighted to announce on the 20 <unk> of April but we've achieved first gold from the sulfide treatment plan with <unk>.

Mark Morcombe: <unk> now completed from both the gravity and vials circuits.

Mark Morcombe: We're immensely proud to have delivered another construction project, on time and on budget, with no lost time injuries, after more than 3.5 million hours worked by our contractor, vendor representative, and owner team. To achieve this in only two years reflects the strength of our project construction team and the Favourable Operating Environment in West Africa, where there is a clear and well-established permitting process. Strong local community support, access to good infrastructure, and a good availability of labour.

Mark Morcombe: We're immensely proud to have delivered another construction project on time and on budget with no loss time injuries after more than $3 5 million hours worked by our contractor vendor representative and <unk> teams.

Mark Morcombe: To achieve this in 92 years reflects the strength of our project construction team.

Mark Morcombe: And the favorable operating environment in West Africa, where there is a clear and well established pivoting process.

Mark Morcombe: Strong local community support access to good infrastructure and good availability of labor.

Mark Morcombe: With the expansion complete, Sabadala Masoa has a significantly improved long-term outlook and highly prospective exploration opportunities as limited exploration has been focused on refractory gold in the region, particularly along the main transcurrent shear zone that runs through the property. We are confident that we will be able to further improve the outlook for Sabadala Masawa through our aggressive exploration program. Moving to slide 30, I want to quickly mention our solar project at Sabadala Masala.

Mark Morcombe: With the expansion complete separate elements, our significantly improved long term outlook and holiday prospective exploration opportunities as limited exploration has been focused on refractory gold in the region, particularly along the main transparent Miami transparent she has that run through the property.

Mark Morcombe: We are confident that we will be able to further improve the outlook for seven dollar massawa.

Mark Morcombe: Our aggressive exploration program.

Mark Morcombe: Moving to slide 30, I want to quickly mention a solar project at seven <unk> and.

Mark Morcombe: In August last year, we launched the construction of a 37 megawatt photovoltaic solar facility with a 16 megawatt battery system in an effort to significantly reduce fuel consumption and greenhouse gas emissions, as well as Lowell Power Co. This is particularly important given the sulphide treatment plant expansion, which will increase our power needs. The solar plant is expected to save approximately 13 million liters of fuel and deliver a 24% reduction in CO2 emissions each year, while reducing overall power costs by around 22% per year.

Mark Morcombe: Last year, we launched the construction of a 37 megawatt photovoltaic solar facility with a 16 megawatt battery system.

Mark Morcombe: In an effort to significantly reduce fuel consumption and greenhouse gas emissions as well as lower power costs.

Mark Morcombe: This is particularly important given the sulfide treatment plant expansion, which will increase <unk>.

Mark Morcombe: The solar plant is expected to save approximately 13 million liters of fuel and deliver a 24% reduction in <unk> emissions each year.

Mark Morcombe: While reducing overall power costs by around 23% per year.

Mark Morcombe: The capital cost of the solar project is $55 million, of which approximately $33 million, or 59%, has now been committed, with pricing in line with expectations. $12 million, or 23% of the capital cost, has been incurred to the end of the first quarter, of which $7 million was incurred in quarter one alone, with a total of $45 million expected to be incurred in the full year 2024. We are on track to start commissioning later this year, with the plant becoming operational early next year.

Mark Morcombe: The capital cost of the solar project is $55 million of which approximately $33 million or 59% has now been committed with pricing in line with expectations.

Mark Morcombe: $12 million or 23% of the capital cost has been incurred to the end of the first quarter of which 7 million was incurred in quarter one alone.

Mark Morcombe: With a total of $45 million expected to be incurred in.

Mark Morcombe: In the full year 2024.

Mark Morcombe: We are on track to start commissioning later this year with the plant becoming operational early next year.

Mark Morcombe: Moving to the Hyundai Mine on slide 31, production decreased compared to Q4 2023, largely in line with the mine plan, as we were focused on stripping activity in the high-grade Carey Pump and Vindaloo main pits during the quarter, with the lower grade Carey West Pit being the main source of ore for the mill feed. In addition, as previously disclosed, we had an 11-day stoppage of mining and processing activities from 23 January due to a contractor-led strike.

Mark Morcombe: Moving to the whole day mine on slide 31 <unk>.

Mark Morcombe: Production decreased compared to quarter four 2023.

Mark Morcombe: Largely in line with the mine plan.

Mark Morcombe: As we were focused on stripping activity in the high grade Kari pump and Vindaloo mine pits during the quarter.

Mark Morcombe: With the lower grade Kari West pit.

Mark Morcombe: Mindful of all fade.

Mark Morcombe: Overall for the mill failure.

Mark Morcombe: In addition, as previously disclosed we had an 11 day stoppage to mining and processing activities from the 20 <unk> of January due to a contract to let strike.

Mark Morcombe: As a result of both the mine sequence and the temporary stoppage, volumes of all mined and processed decreased, as did the average grade prices, resulting in lower production and significantly higher oil sustaining costs for the quarter. Despite lower production in Quarter 1, we expect significant improvement in the second half of 2024, as the stripping program at Carey Pump in Vindaloo, Maine will provide access to high volumes of higher-grade ore, which will improve production and costs. For the full year, Hyundai is on track to achieve its production and cost guidance.

Mark Morcombe: As a result.

Mark Morcombe: By some months sequence and temporary stoppage volumes of ore mined and processed decreased.

Mark Morcombe: As did the average grade processed.

Mark Morcombe: <unk> and lower production at significantly higher all in sustaining costs for the quarter.

Mark Morcombe: Despite lower production in quarter, one we expect significant improvement in the second half of 2024.

Mark Morcombe: That's the stripping program at Kari pump inventory mine will provide access to high volumes of higher grade ore, which will improve production and costs.

Mark Morcombe: For the full year Honda is on track to achieve its production and cost guidance.

Mark Morcombe: At Itty, on slide 32, production increased in Q1, in line with the mine sequence, due to higher tonnes of ore milled, as we mined an increased proportion of soft oxide ore from the Walter and La Plaque pits. All-in sustaining costs increased slightly due to a rise in processing unit costs driven by higher operating costs associated with the commissioning of the resigned circuits. We are still continuing to commission this circuit, which will be fully operational later this year, and we are progressing well with the construction of the Mineral Sizer Primary Crusher project, which should be finished in the second half of the year, with the full benefit to be realized in 2025.

Mark Morcombe: At ETE on slide 32 production increasing quarter one in line with the mine sequence due to higher tonnes of ore milled as we mined an increased proportion of soft oxide ore from the water and la <unk> pit.

Mark Morcombe: All in sustaining costs increased slightly due to a rising processing unit costs, driven by higher operating costs associated with the commissioning of the raison <unk>.

Mark Morcombe: We are still continuing to commission this circuit, which should be fully operational later this year.

Mark Morcombe: And we are progressing well with the construction of the mineral Sizar primary crusher project, which should be finished in the second half of the year with the full benefit to be realized in 2025.

Mark Morcombe: Overall production and cost performance at Itty is expected to be half one weighted due to mining high-grade ore from Itty and Bakatu pits ahead of the wet season and the slight impact of the wet season on processing throughput in the second half of the year. For the full year, Itty is on track to achieve its production and cost guidance. Moving to our manor mine.

Mark Morcombe: Overall production and cost performance at <unk> is expected to be half one weighted due to mining of higher grade ore from <unk> ahead of the wet season, and the impact of the wet season on processing throughput in the second half of the year.

Mark Morcombe: For the full year. It is on track to achieve its production and cost guidance.

Mark Morcombe: Moving to a minimum.

Mark Morcombe: Throughout 2023 and in early 2024, we've been expanding the underground mine at Wona and transitioning Manor to an exclusively underground operation, as the Mayola pit is expected to be fully depleted in the coming months. As you can see from the slide, performance at Manor has been progressively improving since the middle of last year, which reflects both improved mining performance in the underground mine and the progressive increase in access to production stopes as development advances.

Mark Morcombe: Throughout 2023 and in early 2024, we've been expanding the underground mine at Weiner and transitioning to an exclusively underground operation.

Mark Morcombe: <unk> is expected to be fully depleted in the coming months.

Mark Morcombe: As you can say from the slot performance at manner has been progressively improving since the middle of last year, which reflects both improved mining performance in the underground mine and.

Mark Morcombe: And the progressive increase in access to production stopes as development advances.

Mark Morcombe: During the quarter, production increased as we mined and milled more higher-grade tonnes of underground ore. All in sustaining costs decreased as underground mining costs improved significantly, and lower sustaining capital was incurred in the Warrina underground deposit as development started to give way to production. MANA is on track to achieve its full year 2024 production and cost guidance, with costs expected to be slightly weighted towards the second half of 2024 due to the continued ramp-up of underground mining activities in the Wayner Underground and the depletion of the higher cost Mayula open pit in the first half.

Mark Morcombe: During the quarter production increased as we mined and milled more higher grade tonnes of underground ore.

Mark Morcombe: All in sustaining cost decreased as underground mining costs improved significantly and lower sustaining capital was incurred in the wine underground deposit.

Mark Morcombe: As development starts to give way to production.

Mark Morcombe: <unk> is on track to achieve its full year 2020 for production and cost guidance with costs expected to be slightly weighted towards the second half of 2024 due to the continued ramp up of underground mining activities in the Wiener underground and the depletion of the higher cost viola compete in half in the first half.

Mark Morcombe: At the Le Figuet Development Project, we're making good progress towards first gold, and importantly, we're still on budget and on track to deliver first gold in Q2 2024, a quarter earlier than previously scheduled. We are building a 4 million tonne CIL plant that will add more than 200,000 ounces of new production at all sustaining costs below $950 per ounce over 10 years, continuing to improve the quality of our portfolio and drive production growth to above 1.3 million ounces by next year. We launched the project early in Q4 2022, and less than 21 months later, we are already dry-commissioning the processing plant. We've processed them all through the crushing circuit with performance as expected.

Mark Morcombe: At the <unk> development project, we're making good progress towards first gold and importantly, we are still on budget and on track to deliver first gold in quarter, two 2024, a quarter earlier than previously scheduled.

Mark Morcombe: We are building a 4 million ton per annum CIL plant that will add more than 200000 ounces of new production at all in sustaining cost below $950 per ounce over 10 years.

Mark Morcombe: Continuing to improve the quality of our portfolio and drive production growth to about $4 3 million ounces by next year.

Mark Morcombe: We launched the project early in quarter, four 2022 and less in 'twenty. One month later, we are already dry commissioning the processing plant.

Mark Morcombe: Processed ore through the crushing circuit with performance as expected we are finalizing the balance of plan and ancillary infrastructure contraction.

Mark Morcombe: We are finalizing the balance of plan and ancillary infrastructure construction. At the same time, mining activities are progressing well as the fleet mobilization continues. We've already moved nearly 9 million tons of material and built up nearly 1 million tons of stockpiled ore to ensure a smooth production ramp-up. To date, approximately $411 million, or 92% of the total growth capital, has been committed at prices in line with expectations, while $321 million of growth capital has been incurred since the beginning of the project.

Mark Morcombe: At the same time mining activities are progressing well as our fleet mobilization continues.

Mark Morcombe: <unk> already moved nearly 9 million tonnes of material and built up nearly 1 million tonnes of stockpiled ore to ensure a smooth production ramp up.

Mark Morcombe: To date, approximately $411 million or 92% of the total growth capital has been committed with pricing in line with expectations.

Mark Morcombe: While $321 million of growth capital has been incurred since the beginning of the project.

Mark Morcombe: This year's growth capital is expected to amount to $170 million. The FIG-A is expected to produce between 90 and 110,000 ounces at a post-commercial production all-in sustaining cost of $900 to $975 per ounce, which is in line with the Definitive Feasibility Study Assumption.

Mark Morcombe: This year's growth capital is expected to amount to $170 million.

Mark Morcombe: That figure is expected to produce between 90 and 110000 ounces at a post commercial production all in sustaining cost of 900 to $975 per ounce, which is in line with the definitive feasibility study assumptions.

Ian David Cockerill: I will now hand it back to Ian. Thanks Mark and thank you guys. I think, as you've seen from all these preceding slides, we certainly are continuing to deliver against our top key priorities. Our operations remain on track to deliver our four-year guidance with a significantly stronger H2 expectancy. Two growth projects are being delivered in line with or ahead of expectations, and our exploration program continues to generate value both with our near mine opportunities as well as our greenfield targets.

Mark Morcombe: I will now hand back to Ian.

Ian: Thanks, Mark and thank you Guy.

Ian David Cockerill: As you've seen from all these preceding slides, we certainly are continuing to deliver against our key priorities.

Ian David Cockerill: Our operations remain on track to deliver our full year guidance with a significantly stronger page two expected.

Ian David Cockerill: At two growth projects are being delivered in line with or ahead of expectations and our exploration program continues to generate value boasted a near mine opportunities.

Ian David Cockerill: Greenfields targets.

Ian David Cockerill: Our robust balance sheet remains healthy, and we're moving towards a more cash flow generative phase, focused on deleveraging our financial position and rewarding our employees. I think, as people have said, the famous inflection point, and we are very, very close to that inflection point now.

Ian David Cockerill: Our robust balance sheet remains healthy and we are moving towards a more cash flow generative phase focused on deleveraging.

Ian David Cockerill: Financial positions and rewarding our shareholders I think as people have said the same its inflection point and we are very very close to that inflection point now.

Jack Garman: So thank you for listening, everybody. I'll now hand it back to Jack, and we'll start taking any Q&A. Thank you. Ladies and gentlemen, we'll now begin the question and answer session. As a reminder, if you wish to ask a question, you need to press star 1 1 on your telephone and wait for your name to be announced. We will be prioritizing questions from the covering analysts at this time. If you wish to cancel your request, please press the 1-1 again.

Speaker Change: Thank you for listening everybody.

Jack Garman: I'll now hand back to Jackie we will start taking any Q&A.

Jack Garman: Okay.

Jack Garman: Thank you ladies and gentlemen, we'll now begin the question and answer session. As a reminder, if you wish to ask a question you will need to press star one on your telephone and wait for your name to be announced.

Jack Garman: We will be prioritizing question is from the covering analyst at this time, if you wish to cancel your request. Please press star one again.

Operator: Once again, please press stars 1 and 1 if you wish to ask a question. Please stand by while we compile the Q&A queue. Thank you. Once again, ladies and gentlemen, please press stars 1 and 1 on your telephone and wait for your name to be announced.

Jack Garman: Once again, please press star one and one if you wish to ask a question. Please standby, while we compile the Q&A queue. Thank you.

Operator: Mark.

Jack Garman: Again, ladies and gentlemen, please press star one and one on your telephone and wait for your name to be announced few weeks do we go. Your question. Please press star one and one again thank you.

Operator: If you wish to withdraw your question, please press star 1 and 1 again. Thank you. We are now going to proceed with our first question. The questions come from the line of Amos Fletcher from Barclays. Please ask your question; your line is open. Yeah, good afternoon, everybody.

Amos Charles Fletcher: We are now going to proceed with our first question.

Operator: And the question is come from the line of Amos Fletcher from Barclays. Please ask your question. Your line is open.

Amos Charles Fletcher: I had a few questions. First of all, I wanted to ask Guy, just regarding the 150 million gold prepayment deal. Should we read that as a slightly more tax efficient way of funding future dividend flows, or is there some other rationale for it?

Amos Charles Fletcher: Yes, good afternoon everybody.

Amos Charles Fletcher: A few questions first of all I just wanted to ask the Guy just regarding the 150 million gold prepayment deal.

Amos Charles Fletcher: Should we read that as a slightly more tax efficient way of funding future dividend flows.

Amos Charles Fletcher: Or is there some other rationale for it thank you.

Guy F. Young: Thank you. Hi Amos, yeah, one by one. So, on the prepaid, yes, you're right, there is some... advantage from a tax perspective, but I think overall, rather than see this as an overly complicated instrument.

Amos Charles Fletcher: Hi, yes. Thank you.

Amos: Number one on.

Guy: On the prepaid yes, you're right there is some.

Guy: Advantage from a tax perspective, but I think overall rather than see this as an overly complicated instrument.

Guy F. Young: What we're looking at is, in our view, a relatively cost-effective way of bridging us between where we are today and awaiting the cash from dividends which we're expecting in Q4. We can, by virtue of the cost arbitrage... manage to pay down the RCS, which we'll then do again once we've received the dividends in Q4. So a short-term, cost-effective cash bridge.

Guy: What we're looking at is in our view a relatively cost effective way of bridging between where we are today and awaiting the cash from dividends, which we're expecting in Q4.

Guy F. Young: We can by virtue of the cost arbitrage.

Guy F. Young: Managed to pay down the Rcs, which will then do again once we've received the dividends in Q4, so a short term cost effective cash bridge in essence.

Guy F. Young: Okay, thank you. And then, second question, I guess we'll stick with you guys for the time being on working capital, obviously having another reasonably sizable build during the quarter. And we've accumulated quite a bit over the recent quarters. I guess there's a certain amount of that that's going to be permanent for the new projects. So my question is, could you give us roughly how much working capital we can expect to come back by the end of this year?

Speaker Change: Okay. Thank you and then second question.

Guy F. Young: I guess, we'll stick with you guys for the time being on working capital. Obviously, you had another reasonably sizable bill during the quarter and we have accumulated quite a bit over recent quarters, I guess theres a certain amount of that that's going to be permanent for the new projects. So my question is could you give us roughly how much of working capital.

Guy F. Young: We can I expect to come back by the end of this year.

Guy F. Young: Sure.

Guy F. Young: Sure. I think if we take a look at the overall working capital... and Delta, the 82 million outflow is not something that we're particularly comfortable with. So if we break that down, in terms of our trade and other receivables, both the drivers there should be temporary, and it's based on timing more than anything else.

Guy F. Young: Sure.

Guy F. Young: I think if we take a look at the overall working capital.

Guy F. Young: Delta.

Guy F. Young: $82 million of outflow is not something that we are particularly comfortable with.

Guy F. Young: Break that down in <unk>.

Guy F. Young: <unk> of our trade and other receivables.

Guy F. Young: The Delta there, which I'll just talk in round numbers, it's about 18.

Guy F. Young: Both the drivers there should be temporary.

Guy F. Young: And it's based on timing more than anything else. So we've got gold receivables.

Guy F. Young: So we've got gold receivables, which is really a question of cutoff at the end of a quarter. And we've got VAT receivables. VAT receivables, we in fact got 15 million in Senegal just after the close of the quarter. So both of those we would view as timing and temporary in nature.

Guy F. Young: Which is really a question of cutoff at the end of the quarter.

Guy F. Young: And we've got that receivables VAT receivables, we in fact got $15 million in.

Guy F. Young: In Senegal, just after the close of the quarter. So both of those we would view as timing and temporary in nature.

Guy F. Young: Trade Payables, we've got a couple of things moving in there, but broadly speaking, we've got credits as being the biggest single one, and those were two relatively significant supplier payments made from two sites, which again is more timing-related than anything else, as is the next single biggest mover, which is in and around our payroll accruals, so this is essentially a seasonal issue where we've obviously built up an accrual, and then we I think the key topic for us to discuss, maybe going forward, is going to be stockpiles.

Guy F. Young: The trade payables, we have got a couple of things moving in there, but broadly speaking we've got credits as being the biggest single one and.

Guy F. Young: Those with two relatively.

Guy F. Young: Significant supplier payments made up two sites, which again is more timing related than anything else as it is the next single biggest mover, which is in and around our payroll accruals. So this is essentially a seasonal issue where we've obviously built up an accrual and then we effectively payout employee incentives.

Guy F. Young: I think the key topic for us to discuss maybe going forward is going to be on stockpile.

Guy F. Young: So you might have expected, as we did, that we would be building stockpiles, particularly at Sabadala Masawa and Le Figue. Those two are the key drivers of the cash outflow, and we would expect in H2 to be starting to draw down on both the Sabadola-Masawa as well as Le Figue. I think, Amos, to get any more precise at this stage is difficult. We certainly would expect an unwind of working capital in H2, but I prefer to see both of the operations up and running at nameplate capacity before we try and give you any guidance on longer-term structural changes in working capital.

Guy F. Young: You might have expected as we did that we would be building stockpiles.

Guy F. Young: Particularly it's epidote on Massawa.

Guy F. Young: Vijay.

Guy F. Young: Those two.

Guy F. Young: The key drivers of the cash outflow and we would expect an H two to be starting to draw down on both the $7 Massawa.

Guy F. Young: As well as the fee.

Guy F. Young: I think a must to get any more precise at this stage is difficult. We certainly would expect an unwind of working capital in <unk>, but I prefer to see both the operations up and running at nameplate capacity before we try and give you any guidance as to longer term structural changes in the working capital.

Guy F. Young: Okay, thanks very much. And then the final one I might ask, on the Lilium arbitration, could you just sketch out a timeframe for when you could expect this process to reach a potential conclusion, whether it's something we can think about in months or years? Thanks very much.

Speaker Change: Okay. Thanks very much.

Guy F. Young: And then the final one I might ask.

Guy F. Young: On the lithium arbitration could you just sketch out a timeframe for when you could expect this process to reach potential inclusion.

Guy F. Young: Whether it's something we could think about a months or years, thanks very much.

Guy F. Young: Yeah, Amos, I mean, like you, we'd like to know when we could get a satisfactory conclusion to this. But at this stage, it's very much out of our hands. It's in the process, and it will happen when it happens, unfortunately.

Guy F. Young: Yes, I'm, assuming like you, we'd like to know when Lee who get a satisfactory.

Speaker Change: <unk> to us but at this stage.

Amos: It's very much out of our hands it is in the process.

Amos: And it will happen when it happens Unfortunately, I'm afraid I can't give you anything more definitive than that.

Guy F. Young: I'm afraid I can't give you anything more definitive than that. Okay, all right, I'll leave it there. Thanks very much.

Guy F. Young: Okay, all right I'll leave it there thanks very much.

Operator: We are now going to proceed with our next question. And the questions come from the line of Andrew Brakemanis from Steve Phillips. Ask your question. Thanks. Good afternoon.

Speaker Change: We are now going to proceed with our next question.

Andrew Brakemanis: And our question comes from the line of Andrew Brakeman is from Stifel. Please ask your question.

Andrew Brakemanis: A couple of questions for me. First, on the updated shareholder returns policy. There's been no shortage of frameworks proposed across the sector, and I think the one that you adopted in 2021 has certainly been a success, particularly when you frame it as you have on an ounce of production basis. But in general, it seems like finding one that's sustainable and sufficiently flexible to be adhered to seems to have been difficult.

Andrew Brakemanis: Thanks, Good afternoon a.

Andrew Brakemanis: A couple of questions from me first on the updated shareholder returns policy.

Andrew Brakemanis: There's been no shortage of frameworks proposed across the sector and I think the one that you adopted in 2021 has certainly been a success, particularly when you frame. It as you have on.

Andrew Brakemanis: On an ounce of production basis, but in general it seems like finding one that is sustainable and sufficiently flexible to be a tier two seems to have been difficult so with that in mind.

Ian David Cockerill: With that in mind, you mentioned that it would be similar, but could you maybe just talk a bit more about the considerations that go into formulating that plan? In particular, how you thought the previous policy met its objectives, what additional attributes you might like to incorporate in the new one, and how you balance that with your deleveraging objectives? Thanks. Yeah, Andrew. I mean, to be honest with you, you know, we're still debating this.

Speaker Change: Mentioned that it would be similar.

Speaker Change: Could you maybe just talk a bit more about the considerations that go into formulating that plan.

Speaker Change: In particular, how you thought the previous policy met its objectives, what additional attributes you might like to incorporate in the new one and how you balance that with your deleveraging objectives.

Speaker Change: Yeah, Andrew I mean to be honest with you we're still debating this.

Ian David Cockerill: You're right that the likely formulation is going to be very similar to what you had before. However, we believe that that formulation works in terms of giving people both the degree of certainty of a minimum payout and, importantly, sufficient flexibility as performance improves so that shareholders share in the upside of performance. So I genuinely am not anticipating any material diversion away from those principles. The reason for the delay is, again, similar to the response Guy gave in the earlier question.

Speaker Change: Youre right.

Ian David Cockerill: The likely formulation.

Ian David Cockerill: Going to be very similar to what you had before we believe that formulation works in terms of giving people both the degree of certainty.

Ian David Cockerill: Minimum payout, but importantly sufficient flexibility.

Ian David Cockerill: Performance.

Ian David Cockerill: Improves that shareholders share in the upside of performance so.

Ian David Cockerill: I generally are not anticipating any material diversion away from from those principles.

Ian David Cockerill: The reason for the delay is again.

Ian David Cockerill: Similar to the response <unk> gave in the earlier question. We just wanted to see how things settle down. So we can then determine what is the right sort of base level that we give to shareholders.

Ian David Cockerill: We just want to see how things settle down so we can then determine what is the right sort of base level that we give to shareholders and how we would apply any sort of upside. So I would certainly want to be in a position to give more details on this. I would hold for the middle of the year, you know, maybe sort of July and August time.

Ian David Cockerill: And how how we would apply any sort of upside so.

Ian David Cockerill: I would certainly want to be in a position to give more details on this.

Ian David Cockerill: Towards the middle of the year, maybe sort of July August time.

Ian David Cockerill: That's when we will be coming back to shareholders. Okay, understood. Thanks. My second question, I think, relates to Sabadala Masala.

Ian David Cockerill: That's when we will be coming back to shareholders.

Speaker Change: Okay understood. Thanks.

Speaker Change: My second question.

Ian David Cockerill: As it relates to Sabadell on Massawa.

Ian David Cockerill: In the press release announcing the first gold pour from the BIAX plant, you also highlighted the exploration program that was underway at the complex, which is significant this year, as you mentioned. My recollection is that, historically, drilling focused on defining non-refractory resources, such as SOFIA. So, with the BIAX circuit now ramping up, could you maybe remind us of some of the regional refractory targets and, for areas such as Masala Deep, the extent to which those have been drilled?

Ian David Cockerill: Yes release announcing first gold bar from the.

Ian David Cockerill: Tobias.

Ian David Cockerill: Plant you also highlighted the exploration program that was underway at the complex.

Ian David Cockerill: Which is significant to share as you mentioned.

Ian David Cockerill: My recollection is that historically drilling focused on defining non refractory resources such as Sofia.

Ian David Cockerill: So it's a bias circuit now ramping up could you maybe remind us of the.

Ian David Cockerill: Regional refractory targets and fairer for areas such as in Massawa deep the extent to which does have been drilled.

Ian David Cockerill: Yeah, look, rather than me give you an answer here, we've got Jono in the room with us. Let Jono talk about that particular point, because you're exactly right. The emphasis, certainly, now that we've got the ability to process any type of material. It makes a lot of sense not just to focus on oxides but also to look at the refractory, which we know, generally speaking, tends to be higher grade.

Ian David Cockerill: Yes.

Ian David Cockerill: Yeah look rather than me.

Ian David Cockerill: Give you an answer we.

Speaker Change: We got genre in the room with us let Gino.

Jono: To that particular point, because youre exactly right.

Jono: The emphasis.

Ian David Cockerill: Certainly now we got the ability to process any type of material.

Ian David Cockerill: It makes a lot of sense not just to focus on oxides, but also to look at the refractory, which we know generally speaking tends to be higher grade, but at least now we can recover it at sensible since.

Jono Lawrence: But at least now we can recover it at a sensible level. So, Jono, why don't you... Thanks Ian. Andrew, very good question. We are looking at an enlarged focus on the refractory mineralization, and the primary host for that is the MTZ structure that hosts the Massawa deposit, the Massawa Central Zone, and the North Zones.

Jono: We'll level so John why don't you.

Speaker Change: Response to Andrew wonderful Thanks, Andrew.

Jono Lawrence: Andrew very good question.

Jono Lawrence: Looking at large.

Jono Lawrence: A large focus on the refractory mineralization in the primary host for that is on the MTS zaid structure.

Jono Lawrence: The massawa deposits Massawa central xylem north signs.

Speaker Change: We've been driving a lot of remote sensing and geophysics.

Jono Lawrence: So all in all the programs, which has identified very interesting structural.

Jono Lawrence: We've been driving a lot of remote sensing geophysics, soil, and auger programs, which have identified some very interesting structural interpretations and are opening up targets up along the ground at 10 kilometers to the north of Massawa, which we're in the process of finalizing drill programs to test in H2 this year. It's a very long-lived structure, and it certainly has been complicated by the regolith and the weathering, but there are targets that are being developed, and it's looking very positive.

Speaker Change: <unk> and that is opening up targets along the ground 10 kilometers to the north of Massawa, which we're in the process of finalizing drill programs to test in <unk>. This year.

Jono Lawrence: It's a very long lead structure and it certainly has been complicated with the regulator the weathering.

Jono Lawrence: But there are targets that are being developed and it's looking very positive further to the southwest of the massawa deposits that MTS age structure veins and wraps around the teen Cotto intrusive.

Jono Lawrence: Further to the south-west of the Massawa deposits, that MTZ structure bends and wraps around the Tinkoto intrusive, and that starts to sit on our exploration permits, and we are certainly doing some follow-up drilling on the edge of that intrusive as well as down to the south, where the MTZ structure continues for another 20 kilometers with a minimum of work that's been completed in the past. So, very early days, very early work programs, but certainly a focus over the coming remainder of the year. Okay, that's it for me. Thank you very much.

Jono Lawrence: That starts to sit on our exploration permits and we are certainly doing some follow up drilling on the age of that intrusive as well as down to the south with the empty <unk> structure continues for another 20 kilometers.

Jono Lawrence: With a minimum of work that's been completed in the past.

Jono Lawrence: So very early days very early work programs, but certainly a focus over the coming remainder of the year.

Jono Lawrence: Aggressive.

Speaker Change: Okay. That's it for me thank you very much.

Speaker Change: We are now going to proceed with our next question.

Operator: We are now going to proceed with our next question, and the questions come from the line of Carey MacRury from Kanakor, Genuity. Please ask your question.

Jono Lawrence: And the question is come from the line of Kerry Macquarie from Canaccord Genuity. Please ask your question.

Carey MacRury: Hi, good morning, or good afternoon, I'm, just wondering with the comment.

Carey MacRury: I'm just wondering, with the comment of, you know, significantly H2 weighted production, I'm just wondering if you can give us a split of what we should be picking H1 versus H2 or some quarterly guidance going forward. Yeah, we're sort of looking in the range of about 60% of production in the second half. That's great. Maybe one other.

Carey MacRury: Significantly H two weighted production I'm, just wondering if you could give us a split.

Carey MacRury: While we should be thinking H, one versus HDR or some quarterly guidance going forward.

Carey MacRury: Okay.

Carey MacRury: Yes, we're sort of looking in the range of about 60% of the production in the second half.

Speaker Change: Okay, that's great and maybe one other one for me can.

Ian David Cockerill: Um, can you just comment maybe just on the political, [inaudible] Any concerns that you have there about the impact on the mines? Carey, I mean, you know, I think those of us who've been associated with Africa for a long time are used to a reasonable degree of volatility. And I think it's fair to say that since the beginning of the year, I wouldn't say that the situation has either deteriorated or hasn't got any better. It is what it is.

Carey MacRury: Can you just comment maybe just on the political climate in Burkina Faso seems like a lot of negative headlines out there and any concerns that you have there on the impact to the mines.

Ian David Cockerill: Alright.

Ian David Cockerill: Gary.

Ian David Cockerill: I think those of us who've been associated with Africa for a long time.

Ian David Cockerill: Youll use to a reasonable degree of volatility.

Ian David Cockerill: I think it's fair to say that from the beginning of the year.

Ian David Cockerill: I wouldn't say that the situation is either deteriorated nor have we got any better.

Speaker Change: It is what it is we manage it.

Ian David Cockerill: We manage it. We have good interaction with the authorities. There's still a lot of communication. So, It's, you know, we're not seeing any, shall we call it, deterioration, but, yeah, I mean, would we like it to be better, easier?

Ian David Cockerill: We have good.

Ian David Cockerill: Interaction with the authorities there.

Ian David Cockerill: Still a lot of communication.

Ian David Cockerill: So.

Ian David Cockerill: It's we're not seeing any should we call it deterioration.

Ian David Cockerill: But yes.

Ian David Cockerill: I mean would we like it to be better easier absolutely.

Ian David Cockerill: Absolutely. But, you know, we've been managing the situation in the country for a while, and we will continue to do so. I will, in fact, over the next couple of weeks, I'm probably going to be going back to Burkina Faso and meeting up with the government authorities again, and continuing with my normal dialogue with. Okay, thanks for that.

Ian David Cockerill: But we we've been managing the situation in the country for a while and we will continue to do so I will.

Ian David Cockerill: In fact over the next couple of weeks and probably going to be going back to the kina Faso.

Ian David Cockerill: Meeting up with the.

Ian David Cockerill: With the governmental authorities again.

Ian David Cockerill: With my normal dialogue with them.

Ian David Cockerill: Okay. Thanks for that and maybe one last one if I can just with the increase in leverage.

Guy F. Young: Maybe one last one, if I can, just with the increase in leverage. You know, it's Q1 now, sir, and Leverage Ursman, uh, will kick up again maybe. Hi Carey, Guy here. You can expect to see our leverage continue to increase. Our estimated peak is going to be the end of Q2 of this year. Essentially, that's the trade-off. But as we continue to generate some free cash flow, we are continuing to invest quite significantly in our growth capex.

Ian David Cockerill: Q1 mouse or the peak leverage Archie okay.

Guy F. Young: Okay kick.

Guy F. Young: Kick up again, maybe in like Q2 Q3.

Guy: Hi, Kerry Guy here.

Carey MacRury: No. We can expect you can expect to see our leverage continued to increase.

Speaker Change: Estimated peak is going to be the end of Q2 this year Sn.

Guy F. Young: Essentially.

Guy F. Young: It's the tradeoff, but as we continue to generate some free cash flow.

Guy F. Young: Continuing to invest quite significantly in our growth capex.

Operator: DecGrowth Cafe effectively gets pretty much done by the end of Q2, but there is such a significant quantum still coming at us in the second quarter that we will increase our leverage, probably peaking at the end of Q2, as I say, before then a relatively rapid de-leverage, both in H2 and then obviously continuing into next year. We are now going to proceed with the next question. And it comes from the line of Anita Soni from CIBC World Markets. Please answer your question; your line is open. Hi, good morning, everyone.

Speaker Change: That growth Capex.

Operator: Effectively.

Anita Soni: That's pretty much done by the end of Q2, but at such significant content still coming at us in the second quarter.

Anita Soni: We will increase our leverage probably peaking at the end of Q2 as I said before then a relatively rapid deleverage both in <unk> and then obviously continuing into next year.

Operator: Sure.

Anita Soni: Alright, that's great. Thanks, guys.

Anita Soni: We are now going to proceed with the next question.

Operator: And it comes from the line of Anita Soni from CIBC World markets. Please ask your question. Your line is opened.

Anita Soni: So can I get a little bit of color on Sabadola-Masawa? You mentioned that the pit is now nearing, the Sabadola pit is now entering the end of its mine life. So, would we assume that grades will continue or decline in Q2 before, you know, the ramp up at the BIOCS facility? What we will see there is we'll continue to bring other non-refractory pits online, so we should be able to maintain the grade profile. Okay. And then, similarly, a question about MANA.

Anita Soni: Hi, good morning, everyone.

Anita Soni: So can you give a little bit of color on Capitola Massawa.

Anita Soni: Mentioned.

Anita Soni: The pit is now nearing to the summit <unk> is now.

Anita Soni: Entering the end of its mine life.

Anita Soni: We assume that grades will continue or decline in Q2 before.

Anita Soni: The ramp up at the at.

Anita Soni: At the biopsy facility.

Anita Soni: Okay.

Anita Soni: What we will say there is we will continue to bring other non refractory pits online. So we should be able to maintain the grade profile.

Mark Morcombe: If I just look at the last year's pattern, like Q1 and Q4 were high in grades but a little bit lower in the middle of the year. Is that typical, or are you expecting a more even spread between the grade profile? We'll go down slightly in Q2 and then we will kick up again in Q3, Q4. We've got three different or distinct mining areas, and we've been mining and establishing two of them, and we're getting to the point of setting up the third one, which will come in during the second half of the year.

Anita Soni: Okay, and then similarly, a question about manner.

Mark Morcombe: If I just look at the last year pattern like Q Q1, and Q4 were high in grades a little bit lower in the middle of the year is that.

Mark Morcombe: Typical or are you expecting a more even spread between the high grade profile.

Mark Morcombe: We will go down slightly in Q2.

Mark Morcombe: And then we will kick up again in Q3 Q4.

Mark Morcombe: We've got at <unk>, we have three different distinct mining areas.

Mark Morcombe: We've been mining and establishing two of them and we're getting to the point of setting up the third one.

Mark Morcombe: Which will come in in the second half of the year.

Mark Morcombe: Right. And then lastly, at ET, just thinking about, you know, the fact that it's front-half weighted, how should we think about, you know, the pattern of stockpileing and strip ratio in the first half versus the second half? We'll maintain a fairly even profile; what we try to do is we just try to look at where we can get it, you know, we don't want to be mining in the bottom of oxide pits in the wet season.

Speaker Change: Alright, and then lastly at ETE, just thinking about the fact that spreads have weighted.

Mark Morcombe: How should we think about the pattern of stockpiling in strip ratio in the first half versus second half.

Mark Morcombe: We will maintain a fairly even profile.

Mark Morcombe: What we try to dose. So we just tried to look at where we can get.

Mark Morcombe: We don't want to be mining in the bottom of oxide pits in the wet season. So generally.

Mark Morcombe: So generally, the wet season or quarter three is fairly low by comparison, so if anything, we build up stockpiles in the first half of the year, and then we consume them in the second half of the year. Okay, thanks. And just to follow up from Andrews, or sorry, I don't know if it was Andrew, but the question about the arbitration, that was the amount that you were supposed to receive, I think, was the amount to be received in Q1 around $113 million. Is that correct? Yeah, look, I mean, there's $125 million, which is currently outstanding, but none of that has been received as yet.

Mark Morcombe: The wet season or quarter three is fairly low.

Mark Morcombe: By comparison, so if anything we built up stockpiles in the first half of the year and then we can see them.

Mark Morcombe: Second half of the year.

Mark Morcombe: Okay. Thanks, and just a follow up from Andrew sorry enough. It was Andrew but the question about the about the arbitration.

Mark Morcombe: That was the amount that you were supposed to receive I think with it.

Mark Morcombe: I will now be received in Q1 around $113 million is that correct.

Speaker Change: Yes look I mean, there's $125 million.

Mark Morcombe: Currently outstanding.

Mark Morcombe: But.

Mark Morcombe: None of that has been received as yet.

Mark Morcombe: Okay.

Speaker Change: Alright. Thank you that's it for my questions.

Speaker Change: We are now going to proceed with the next question.

Ian David Cockerill: All right. Thank you. That's it for my question. We are now going to proceed with the next question. And you come from the line of Will Darby from Bebbanburg. Please ask your question. Hi, good afternoon to the Endeavour team. Thanks for your time. Just one from me on Samadhala Masala.

Mark Morcombe: And it comes from the line of with Dolby from AB Inbev. Please ask your question.

Will Darby: Hi, good afternoon.

Will Darby: Thanks for the time.

Will Darby: Just one from me from a dollar massawa.

Will Darby: Yeah, I'm just trying to reconcile achieving the production guidance of 360, 400, and 1000 ounces after the softer Q1. I wonder if you could give a bit more granularity on the pickup in throughput and grades for the rest of the year. You know, that'll facilitate that catch-up. The big difference at Sabadala is the commissioning of the biox plant.

Will Darby: Yes, Im just trying to reconcile achieving.

Will Darby: Sure.

Will Darby: 360, 400000 ounces after the softer Q1.

Will Darby: I Wonder if you could give a bit more granularity.

Will Darby: The pickup in throughput and grades for the rest of the year.

Will Darby: So facilitate that catch up.

Will Darby: Okay.

Will Darby: The big difference.

Will Darby: Is the <unk>.

Will Darby: Commissioning of the plant.

Ian David Cockerill: So we won't expect much in Q2 as we just start the ramp-up phase, but the ramp-up will continue during Q3 and then we'll hit full production during Q4. I think, Will, the important thing to remember is that with the introduction of the biox plant, we would anticipate improvements in overall recovery. As you know, for some time now, we've been putting material through the plant, and the processing is not so optimal because, you know, recoveries are not where they should be.

Will Darby: So we.

Ian David Cockerill: We don't expect much in Q2 as we just start.

Ian David Cockerill: The ramp up phase.

Ian David Cockerill: The ramp up will continue during Q3, and then we will.

Ian David Cockerill: Production during Q4.

Will Darby: Okay. Thank you.

Ian David Cockerill: I think as well we will I mean, the important thing to remember is with the introduction of the box plant we would anticipate.

Ian David Cockerill: Improvements in overall recovery.

Ian David Cockerill: As you know for some time now we've been putting material through the plant.

Ian David Cockerill: The processing is sub optimal.

Ian David Cockerill: Because recoveries are not where they should be that is with <unk> coming up we should be getting.

Ian David Cockerill: But as with the biox coming up, you know, we should be getting slightly better recoveries as well. So it's a combination of better material, larger throughput, as well as better recovery. So it's a combination of factors all coming together that are going to play out in Q3-Q4. Okay, that's helpful. Thanks a lot.

Ian David Cockerill: Slightly better recoveries as well so it's a combination of better material larger throughput as well as better recovery. So.

Ian David Cockerill: It's a combination of factors all coming together.

Ian David Cockerill: Play out in Q3 Q4.

Speaker Change: Okay. That's helpful. Thanks, a lot.

Ian David Cockerill: Yeah.

Operator: We are now going to proceed with our next question, and the questions come from Lala Noftaniel, a major from UBS. Please ask your question. Hi, thanks so much.

Speaker Change: We are now going to proceed with our next question.

Lala Noftaniel: And the question is come from the line of Daniel Major from UBS. Please ask your question.

Daniel Edward Major: Two questions. Well, first, this is just perhaps following up on some of the other questions around the cash flow profile through the year. Certain items, just in terms of the cash capex, you spent $179 million, I think, in the first quarter. Can you give us a stairway that should be in the second quarter and then through the second half of the year? Similar questions around cash tax distribution to minorities.

Lala Noftaniel: Hi, Thanks very much.

Daniel Edward Major: Two questions.

Daniel Edward Major: First is just perhaps following up on some of the other questions around the cash flow profile.

Daniel Edward Major: Through the year.

Daniel Edward Major: Certain items just in terms of the cash Capex you spent $179 million I think in the first quarter.

Daniel Edward Major: Can you give us a stay away that should be second quarter, and then trade.

Daniel Edward Major: The second half of the year, a similar questions around cash tax distributions to minorities.

Guy F. Young: How would you be thinking about those kinds of payments just to try to map the profile of net debt through the year? That's the first question. Hey Dan, I may not have caught the second part of the first question particularly well, but you can redirect me if I get it wrong. In terms of the cash flows, Dan, we've got, I think the key thing in trying to model this out would be just to try and take into consideration the very significant second quarter growth capex total.

Daniel Edward Major: Should we be thinking about that as kind of payments just to try to match that.

Speaker Change: Price all of net debt through the <unk>.

Dan: Through the year, that's first question.

Speaker Change: Hey, Dan.

Speaker Change: I may not have.

Dan: The second part of the first question, particularly well, but you can re redirect me if I get it wrong.

Dan: In terms of the cash other than we've got I think the key thing in trying to model. This out would be just to try and take into consideration the very significant second quarter growth Capex totaled so we are looking.

Guy F. Young: So we were looking at anywhere between 150 to 160 million if I included solar in the number of growth capex in that in our second quarter. For the remainder, we've seen some lumpy but relatively immaterial numbers coming through in our sustaining capex, but I think our overall profile would be fairly flat if you look at the general sustaining and non-sustaining, but what you do have is a front half weighted stripping and development number, you've got some HME, and then you've got the growth capex profile, which effectively comes to a conclusion in all material aspects by I think the second part of the question was about and around minorities and timing, is that right? Yes, that's right. Minorities and withholding tax or cash tax; it can be quite lumpy.

Guy F. Young: At anywhere between $150 million to $160 million. If I include cellular and the number of growth capex in that in our second quarter for the remainder we've seen some lumpy, but relatively immaterial numbers coming through in our sustaining capex, but I think our overall profile would be fairly flat. If you look at the general.

Guy F. Young: <unk> sustaining and non sustaining but what you do have is a front half weighted stripping and development number you've got some <unk> and then you've got the growth capex profile, which effectively.

Guy F. Young: Comes to a conclusion and all material aspect by by the end of the second quarter.

Speaker Change: I think the second part of the question within and around minorities and timing.

Guy F. Young: Is that right.

Guy F. Young: Yes, that's right minorities and withholding tax or cash tax it can be quite lumpy.

Guy F. Young: Yeah, sure. So we would effectively have Q2 with some of our provisional payments on some of our bigger sites coming through. We would then look to be declaring dividends, effectively coming out at the back end of Q3 and during Q4, and those dividend declarations will carry with them cash outflows for obviously withholding tax on both our portion of the minority shares as well as the state portion of dividends, and then ultimately the net cash coming to us.

Speaker Change: Yes sure so.

Guy F. Young: We would effectively have.

Guy F. Young: Q2, with some of our provisional payments on some of our biggest sites coming through.

Guy F. Young: We would then look to be declaring dividends effectively coming out at the back end of Q3 and during Q4 and those dividend declarations will carry with them cash outflows for obviously withholding tax on but a portion of the minorities as well as the state portion of dividends.

Guy F. Young: And then ultimately the net cash coming to us. So Q2 is basically provisional CIP and then Youll have withholding tax Q3, and then ultimately peaking in Q4.

Guy F. Young: So Q2 is basically provisional CIT, and then you'll have withholding tax in Q3, and then ultimately peaking in Q4. Okay, so both your reasonable sized minority dividend outflow and withholding tax in the second quarter. Dan's predominantly CIT, so it'll be corporate income tax in the second quarter. Withholding tax doesn't really kick in from a cash flow perspective until the second half.

Guy F. Young: Okay. So both reasonable size minority dividend outflow and withholding tax in the second quarter, if we're thinking about that.

Guy F. Young: Net debt peak.

Guy F. Young: Dan predominantly <unk>, so it'll be corporate income tax in the second quarter.

Guy F. Young: Withholding tax doesn't really kick in from a cash flow perspective until the second half.

Guy F. Young: Okay. All right. Thanks. And then the second question, on the terms on the CapEx front, if we look forward into 2025, all of your key growth capex will be gone. What should we be still thinking about as sustaining and non-sustaining?

Speaker Change: Okay alright. Thanks.

Guy F. Young: Then the second question, Tom just on the Capex front, if we look forward into 2025.

Guy F. Young: All of your.

Guy F. Young: Key gross capex will be will be gone.

Guy F. Young: What should we be still thinking about us.

Daniel Edward Major: So the sort of capex run rate once both growth projects are up and running, I think the consensus is around 300 million. Is that a reasonable number for 2025? Yeah, as we finish the growth projects, the sort of run rate for our sustaining and non-sustaining operations will be in the range of $325 million to $375 million for 2025. Great, thanks. And final one. The investigation into Sebastien's exit has been finalized internally.

Guy F. Young: Our sustaining and non sustaining set of sort of capex run rate once both projects.

Daniel Edward Major: Up and running I think the consensus is around $300 million is that a reasonable number for 2025.

Daniel Edward Major: Yes, as we finished the growth projects.

Daniel Edward Major: <unk> sort of run rate for sustaining.

Daniel Edward Major: Sustaining non sustaining will be in the range of $325 million to $375 million.

Daniel Edward Major: 2025.

Daniel Edward Major: Great.

Daniel Edward Major: <unk>.

Daniel Edward Major: Sure.

Speaker Change: And final one.

Ian David Cockerill: Have you had any dialogue with any external agencies as to whether they need information or are looking into this? Yeah, Daniel. There's been no communication from any external agency that we're aware of seeking more information, so nothing has come to our attention. Great, thanks a lot.

Daniel Edward Major: See the investigation has been.

Ian David Cockerill: Sebastian Zac has been finalized internally have you had any dialogue with.

Speaker Change: Any external.

Daniel: Agencies as to whether.

Ian David Cockerill: Yes, they need information or looking into this.

Ian David Cockerill: Okay.

Speaker Change: Yes, Daniel Theres been no.

Speaker Change: No communication from any.

Daniel: Eternal agency.

Daniel: We are aware of.

Ian David Cockerill: <unk> more information so nothing has come to our attention.

Speaker Change: Great. Thanks, a lot.

Ian David Cockerill: Okay.

Operator: We are now going to take our next question, and it comes from the line of Don DeMarco from National Bank Financial. Please ask your question. Your line is open.

Speaker Change: We are now going to take our next question.

Don DeMarco: And it comes from the line of Don Demarco from National Bank Financial. Please ask your question. Your line is open.

Don DeMarco: Thank you, operator. And good day, Ian and team. So, first question on Hyundai: the strike weighed on the quarter. Is there a potential for a relapse of the issues that caused the strike? We'd like to think not.

Don DeMarco: Thank you operator, and good day, Ian and team.

Don DeMarco: So first question on Hyundai strike weighed on the quarter.

Don DeMarco: Is there a potential for relapse of the issues that caused the strike.

Mark Morcombe: There was a lot of dialogue done, and it wasn't you know, we did mention specifically that it was contractor-led because there was one of those opportunistic ones where one sort of... It's sort of a bit of a domino effect, and people were trying to take advantage of the situation. We've had extensive dialogue with all contractors, our own workforce, and so forth, trying to understand what the reasons behind it were.

Don DeMarco: We'd like to think not.

Mark Morcombe: There was a lot of dialogue.

Mark Morcombe: Done and it wasn't.

Mark Morcombe: Did mention specifically that it was contracted led because.

Mark Morcombe: There was.

Mark Morcombe: It was one of those opportunistic one win one sort of.

Mark Morcombe: It's sort of a bit of a domino effect and people were trying to take advantage of the situation we've had extensive dialogue.

Mark Morcombe: With all contracted with our own workforce and so forth and trying to understand what was the reasons behind it we believe they are addressed.

Mark Morcombe: We believe they are addressed. The situation, as Ian mentioned, in-country is fairly tenuous, and right now, I think people are taking the opportunity to try and perhaps get something a little bit better for themselves. This could happen, but I think that the way that it was managed was very, very good.

Mark Morcombe: The situation as Ian mentioned in country is fairly tenuous and right now I think people are.

Mark Morcombe: <unk> opportunity.

Mark Morcombe: To try and perhaps something a little bit better for themselves and.

Mark Morcombe: This could happen, but I think that the way that it was managed was very very good we did have support from government importantly on addressing this.

Mark Morcombe: We did have support from the government, importantly, in addressing this, and I think that we've sort of strengthened a lot of protocols because it's not just striking the people and the contractors and so forth, it's ensuring that local communities and local influence groups and so forth are all very much aware of what's happening on the mine so that they can't be influenced by people on the mine to try and support their claims. And so, given the deltas versus guidance at Hyundai, what are the levers that you have to catch up on over the rest of the year? We obviously know it's going to be a back end load a year, but are there ways to exacerbate that and catch up? The main lever, and it's, you know, the strike is unfortunate.

Mark Morcombe: And and I think.

Mark Morcombe: We've sort of strengthened a lot of protocols because it's not just the the striking the people and the contractors and so forth. It it's ensuring that local communities and local influence groups and so forth are all very much aware of what's happening on the mindset that they can't be influenced our people on the mine to <unk>.

Mark Morcombe: And support.

Mark Morcombe: Clients.

Mark Morcombe: Okay.

Mark Morcombe: And so given the delta versus guidance at home date, what are the levers that you have to catch up over the rest of the year. We obviously, we know it's going to be backend loaded year, but are there ways to exacerbate that.

Mark Morcombe: Okay.

Mark Morcombe: The mine lasers.

Mark Morcombe: The strike is unfortunate Q1, and Q2 was always going to be lower than the second half.

Mark Morcombe: Q1, Q2 was always going to be lower than the second half, and the strike just exacerbated that a little bit. We are well and truly progressing on the stripping in the Vindaloo main and the carry pump pits, and then we will be into the higher grade ore there in the second half of the year, and we're confident that that will bring us through. And Ian and Guy, my next question.

Mark Morcombe: And the strike just exacerbated that a little bit.

Mark Morcombe: We.

Mark Morcombe: Well <unk> progressing on the stripping and the Vindaloo mine and the Kari pump pit.

Speaker Change: And then we will be into the high grade ore in.

Mark Morcombe: In the second half of the year.

Speaker Change: And we're confident that that will bring us through.

Guy F. Young: So the long-term net debt to EBITDA targets about 0.5 times. But with EBITDA fluid, it's increasing next year, what is the magnitude of debt that you intend to repay to achieve this long-term target? Don, I'll try that.

Mark Morcombe: Okay.

Speaker Change: Ian and Guy I guess my next question.

Don DeMarco: The long term net debt to EBITDA targets about five times right.

Speaker Change: Right with EBITDA fluid and its increasing next year, what is the magnitude of debt that you intend to repay to achieve its long term target.

Don DeMarco: John I'll try that im not sure when we get this one to exactly what you're looking for.

Guy F. Young: I'm not sure I'm going to get this one to exactly what you're looking for, but we are looking at, I'm sure you know our debt structure, right? So our primary repayment is going to be against the RCF. We'll be looking to repay that RCF as much as we can during 2024 with our upstream cash. That should take us down to, not necessarily quite within our target, but closer to that target.

Guy F. Young: We are looking at.

Guy F. Young: So you know our debt structure right. So what our primary our primary repayment is going to be against the Rcs.

Guy F. Young: Yes.

Guy F. Young: I'll be looking to repay that Rcs.

Guy F. Young: As much as we can during 2024 with our upstream cash.

Guy F. Young: Should take us down to not necessarily quite within our target back closer to that target.

Guy F. Young: That will be primarily the area that we will seek to continue to repay, re-forecasted, or strategized around a longer or medium to long-term capital structure change at this point in time. So our primary aim is to pay down that RCF in order to get back into the target leverage ratio. I see. Okay, so I think the balance was $650 million. Do you expect to repay that back in full by, before, let's say, for example, you start building TAN to Iguala, if there's a go-forward decision on that?

Guy F. Young: That will be primarily the area that we will seek to continue to repay we haven't re forecast did or strategize around a longer medium to long term capital structure change at this point in time. So our primary aim is to pay down that Rcs in order to get back into into.

Guy F. Young: The target leverage ratio.

Guy F. Young: I see okay. So I think the balance of $6 $650 million do you expect to repay that back in full by.

Guy F. Young: Before let's say for example, you start building candy guava.

Guy F. Young: Gulfport decision on that.

Guy F. Young: We will continue to pay down the LCS. I think it's a little bit too far in the future to talk about TANDA for me to be able to give you any clearer direction at this stage, I'm afraid.

Guy F. Young: Yeah.

Guy F. Young: We will.

Guy F. Young: Continue to pay down the alethia I think it's a little bit too far in the future to talk about Tenda for me to be able to give you any clear direction at this stage I'm afraid.

Guy F. Young: Okay, that's all for me. Thank you for that, and good luck with that. We are now going to proceed with our next question. And the questions come from the line of Sandeep Peety from Morgan Stanley. Please ask your question. Thank you, operator, and thank you to Endeavour Management for taking my questions. I have a couple of them left.

Speaker Change: Okay. That's all for me, thank you for that and good luck quicker.

Sandeep Peety: We are now going to proceed with our next question.

Sandeep Peety: And the question is come from the line of Sandeep <unk> from Morgan Stanley. Please ask your question.

Sandeep Peety: Thank you operator, and thank you management for taking my questions.

Sandeep Peety: So, firstly, coming back to the leverage point, you expect leverage to peak in 2Q. Can you confirm that prepayment of 150 was received during 2Q, and despite that, you expect the leverage to sort of peak in 2Q? And this is on top of that you are expecting a larger withholding tax to be paid in the second half of the year. Hi there. I'll try and take you through each one of those.

Sandeep Peety: Couple of Kevin left so firstly coming back to deleverage point, you expect leverage to peak into Q can you confirm that prepayment of 150 was received during Q and despite that you expect deliveries to sort of back into queue.

Speaker Change: And this is this is on top of that you would expecting allowed Ted withholding tax to be paid in second half.

Guy F. Young: So, yes, I can confirm that the prepaids were received in terms of cash in Q2. The prepaids are accounted for as deferred revenue and don't impact our net debt, so they aren't taken into consideration when we talk about net debt. I think the net debt is better viewed as growth from our 831 today. We'll take it off from whatever we can generate in terms of free cash flow, and then we're going to add back to that leverage in terms of our growth capex.

Speaker Change: Sure Sandy.

Guy F. Young: Try and take you through each one of those.

Speaker Change: Yes, I can confirm that the prepay.

Guy F. Young: To receive in terms of cash in Q3.

Guy F. Young: The prepay.

Guy F. Young: It did fall as deferred revenue and don't impact.

Guy F. Young: Net debt so it isn't taken into consideration when we talk about the net debt I think the net debt is better viewed as.

Guy F. Young: As growth from our <unk> hundred 31 today.

Guy F. Young: We'll take it off from whatever we can generate in terms of free cash flow and then we're going to add back to that leverage in terms of our growth capex.

Guy F. Young: So the growth in our leverage to the end of Q2 is predominantly based on growth capex outflows, and the prepaid doesn't necessarily come into that. And then I think the third piece was a question about the withholding tax.

Guy F. Young: The growth in our leverage to the end of Q2 is predominantly based on growth Capex outflows.

Guy F. Young: The prepaid doesn't necessarily come into that.

Guy F. Young: And then I think the third piece was.

Guy F. Young: A question on the withholding tax.

Guy F. Young: Yes, the withholding tax we should see from a cash outflow perspective as a Q3-Q4 issue. And, of course, we have considered that when we've looked at, A, our cash forecasting, and B, when we talk to you about future leverage ratios. Okay, thank you. And then secondly, it would be very helpful if you could provide some sort of guidance on cost and production for 2Q, 3Q, and 4Q, just to better forecast. And then internally, are you picking in the sort of midpoint of the production guidance range when you're thinking for the year?

Guy F. Young: Yes, Adam withholding tax we should see from a cash outflow perspective, being a Q3 Q4 issue.

Guy F. Young: And of course, we have considered that when we've looked at.

Guy F. Young: Our cash forecasting and B when we when we talk to you about future leverage ratios.

Speaker Change: Okay. Thank you.

Speaker Change: And then secondly.

Guy F. Young: It could be really helpful. If you can provide some sort of guidance on cost and prediction for Q3, Q4, Q, just a little bit tougher to guys.

Guy F. Young: But just one question and then internally are you baking in sort of midpoint of production guidance when you're thinking for the year.

Guy F. Young: Sandeep, we're going to stick as we always have done with annual guidance. We've told you the rough split between production in H1 and H2, and to be honest with you, that's the level of granularity that we're comfortable with and that we think is appropriate.

Guy F. Young: Okay.

Guy F. Young: Sandeep.

Sandeep Peety: Going to stick as we always have done with annual guidance.

Guy F. Young: We've told you the sort of the rough split between production in H, one and H two.

Sandeep Peety: And to be honest with you that's fee.

Sandeep Peety: The level of granularity that we're comfortable with.

Guy F. Young: Zinc is appropriate so there won't be any more than what we've already said in terms of the.

Ian David Cockerill: So there won't be any more than what we've already said in terms of production as well as the cost guidance and the balance of production in H2. Okay, thank you, and have you had any discussions with the new government in Senegal, and are you expecting some changes to mining laws based on your discussions? Sorry, you're saying, do we anticipate a change in the mining law in Senegal? We have not heard anything. What can we anticipate? Who knows?

Guy F. Young: <unk> production as well as the cost guidance and the balance of production and H two.

Ian David Cockerill: Okay. Thank you and.

Ian David Cockerill: Have you had some discussion with new Goldman and cynical.

Ian David Cockerill: And how do you expecting some changes to mining laws based based on your discussion.

Ian David Cockerill: Sorry did you say.

Ian David Cockerill: Do we anticipate a change in the mining law in Senegal.

Speaker Change: Yes, yes.

Ian David Cockerill: We have not heard anything.

Ian David Cockerill: <unk>.

Ian David Cockerill: What could we anticipate.

Ian David Cockerill: Who knows.

Ian David Cockerill: But we are.

Ian David Cockerill: But I will actually be going to see the new mining minister in the next week or so, so I will certainly see what his view is. But bear in mind, we already have a mining convention at our operation, and we would certainly hope that, irrespective of any possible changes that may or may not take place, governments would respect the existing convention.

Ian David Cockerill: We will actually be going to see the.

Ian David Cockerill: The new mining Minister.

Ian David Cockerill: The next week or so so I will certainly see what the what the view is that we.

Ian David Cockerill: Bear in mind, we already have.

Ian David Cockerill: Our mining convention.

Ian David Cockerill: At our operation and we would certainly hope that irrespective of any possible changes that may or may not take place with governments with respect the existing conventions.

Speaker Change: Thank you very much.

Ian David Cockerill: Thank you very much. We are now going to take our last question. And the questions come from the line of Anita Soni from CIBC World Market. Please ask your question. Hi, I just wanted to follow up on the sustaining capital comment. I think you said it was 325 to 375.

Speaker Change: We are now going to take our last question.

Anita Soni: When you say sustaining, are you talking about both sustaining and non-sustaining for that guidance? Yes, Anita, that's correct. Okay. And then just to be clear, do you not expect any gross capital capex on top of that, or is there anything else that you should be modeling? Until another project's approved, such as a SAFU in the future, we have no other growth capital. We're finishing off the solar project this year as well. Okay, and then this year's full sustaining capital guidance was around $315. So what's the main driver of that, you know, additional, I don't know, I guess that's around $60 million.

Ian David Cockerill: And the question is come from the line of Anita Soni from CIBC World markets. Please ask your question Hi.

Speaker Change: Hi, I just wanted to follow up on the sustaining capital comment I think you said it was three sorry.

Anita Soni: 25 to 375, when you say sustaining or you're talking about both.

Anita Soni: Staining and non sustaining for that for that guidance.

Speaker Change: Yeah, So Nathan that's correct.

Anita Soni: Okay.

Anita Soni: And then just just to be clear.

Anita Soni: The you do not expect any growth capital Capex on top of that or is there anything else that you should be modeling.

Anita Soni: And so another projects approved such as staff, who in the future. We have no other growth capital we are finishing off the solar project this year as well.

Anita Soni: Okay and then this year is this yours Paul.

Anita Soni: Staining capital guidance was.

Anita Soni: Around 315 so.

Anita Soni: What's the main driver of that additional I don't know I guess.

Anita Soni: Around $60 million.

Mark Morcombe: It's just with Le Figuet coming on board. Okay, right. And would that be a good sustaining capital number for Lafigue going forward as well, around $60 million, or is that slightly elevated as it's its first year?

Anita Soni: It's just with <unk> coming on board.

Mark Morcombe: Okay, Alright, and would that be a good sustaining capital number for <unk> going forward as well around 69 or is that slightly elevated in the first year.

Mark Morcombe: I think the best thing there is just to refer to the DFS and the profile in the DFS. All right. Okay. Thank you. We have no further questions at this time; I'll hand it back to you for closing remarks. Thank you, Operator. Thanks, everybody, for dialing in, and thank you for your very interesting questions, and we look forward to seeing you at our Q2 results and half-year feedback. Hopefully, we'll be giving you some better news then.

Mark Morcombe: I think the best thing there is just refer to the DFS and the and the profile in the DFS.

Jack Garman: Okay, thank you very much indeed. Bye-bye now. This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you. Thank you for watching!

Speaker Change: Alright, okay. Thank you.

Speaker Change: We have no further questions at this time I'll hand back to you for closing remarks.

Speaker Change: Thank you operator, and thanks, everybody for dialing in and thank you feel your very interesting questions and we look forward to seeing you at our Q2.

Jack Garman: <unk> half year feedback hopefully will be giving you some better news.

Jack Garman: Okay. Thank you very much indeed for violence.

Jack Garman: This concludes today's conference call. Thank you all for participating you may now disconnect your lines. Thank you.

Jack Garman: Okay.

Jack Garman: [music].