Q3 2024 First Quantum Minerals Ltd Earnings Call

October 23, 2024

Operator: Thank you for standing by.

Operator: This is the conference operator.

Tristan Pascall: Welcome to the First Quantum Minerals Ltd.

Tristan Pascall: 3rd Quarter, 2024 Results Conference Call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then zero.

Bonita To: I would now like to turn the conference over to Bonita Toe, Director, Investor Relations.

Tristan Pascall: Thank you, Gillian, and thank you everyone for joining us today to discuss our third quarter results. During the call, we will be making forward-looking statements. As such, I encourage you to read the cautionary notes that accompany this presentation. Our MDNA ends a related news release. As a reminder, the presentation is available on our website and that all dollar references are in US dollars unless otherwise noted.

Tristan Pascall: On today's call, our Tristan Pascall, our Chief Executive Officer, Ryan MacWilliam, our Chief Financial Officer, and Rudi Badenhorst, our Chief Operating Officer.

Tristan Pascall: And with that, I will turn the call over to Tristan for opening remarks.

Tristan Pascall: Thank you, Bonita, and thank you everybody for joining us today for our third quarter updates. It's pleasing to report strong operational performance from the Zambian operations during the quarter, until which Rudi will cover in his remarks. Over the last several quarters, the work by the teams at site has placed us in today's position to deliver on the upper end of the copper production guidance range and the lower end of the cost guidance that we provided earlier this year.

Tristan Pascall: While the Zambian operations had a successful quarter with production, it is with deep regret that we announce the death of a colleague at Conçanchi towards the end of the quarter. The health and safety of our colleagues across the business is our top priority. This includes providing all necessary support for both our employees and their families during this difficult time.

Tristan Pascall: I would like to extend my deepest sympathies to the family and friends impacted by this tragedy. In Zambia, the country continued to experience power restrictions during the quarter. However, our teams at Conçanchi and Trident were quick to respond with operational adjustments to mitigate the impact of these restrictions, resulting in minimal disruptions to copper production. In the near term, with existing contracts covering approximately 50% of our power needs through to April 30, 2025, we expect to have sufficient power to avoid operational interruptions in the remaining quarter of the year. These agreements include options for extension, providing flexibility in our power sourcing strategy.

Tristan Pascall: We continue to be proactive in our power management efforts, recognising the importance of power stability, not just for the mining sector, but also for Zambia's broader civil society. And as such, we are working constructively with the government to develop long-term solutions that support both industry and the country's energy security. Our efforts reflect our broader commitment to Zambia's economic and energy stability, ensuring that essential services and industries remain operational, whilst mitigating the impact of power shortage.

Tristan Pascall: Doctors. For the medium term, the companies in an advanced discussion to receive offtake from three independent power producers for solar and natural gas projects that will add nearly 800 megawatts in country power generating capacity. These projects are scheduled to come online in 2025, and we'll ensure that we can secure sufficient power for the commissioning and ramp-up of the S3 expansion of Consentie. In addition, the company is looking at direct offtake arrangements with independent renewable power producers that are expected to be commissioned in 2027-28 that will add an additional 480 megawatts of power generation capacity.

Tristan Pascall: With regards to longer-term solutions, we remain supportive of the commitments made by the country to ensure future energy resilience. On this front, we are actively collaborating with ZESCO on critical projects aimed at expanding and stabilising the national grid, including installation of static-fire compensators in the Northwestern Province.

Tristan Pascall: Staying in Zambia, the 2025 national budget was presented on September 27 by the Minister of Finance and National Planning. The Minister reaffirmed his commitment to maintaining stable and predictable tax policies to encourage investment, and as such, there were no significant changes to the mining tax regime.

Tristan Pascall: Over to Panama, we continue interactions with various levels of government, stakeholder, and community groups in the country. We have not yet met with a new president, who has made public statements that the issue of the Co-Branaman mine will only be addressed in early 2025. In the meantime, we continue to work on the approval of the preservation and safe management programme. The plan was submitted on August 27, along with a formal presentation to the Ministry of Commerce and Industries on September 25. But the plan is still pending in government approval, and therefore aspects of the plan have not yet been implemented by the company.

Tristan Pascall: At Co-Branaman, however, maintaining the integrity of the site remains of utmost importance to the company, and really will review the maintenance works that we continue with there. In parallel with the work of the site, the company is also embarked on a comprehensive programme of public outreach to provide transparent information regarding the mine to the Panamanian people. As part of the programme, we have presented at universities, schools, and several public events. The publication of our virtual tour online has attracted a significant number of visitors, curious to further understand the role of responsible mining in Panama. And we continue to engage closely with our key stakeholders, including our workforce, local communities, and suppliers.

Tristan Pascall: With regards to arbitration, our ICC arbitration continues to be the most advanced, with a final hearing scheduled for September 2025. Under the FTA arbitration, the company has three years from the date of Panama's breaches of the FTA to file its arbitration claim. We continue to maintain the position that arbitration is not our preferred outcome, and we remain committed to dialogue with the new government and to being part of the solution for the country and the people of Panama.

Tristan Pascall: Along with our third quarter results, the company announced the appointment of Mrs. Montalvo and Mr. Gere to the Board of Directors. I'm pleased to welcome both to the board, both of whom bring several decades of industry experience with them and with one-eater's experience in social affairs in Latin America and Africa and Kevin's deep knowledge of the copper markets.

Rudi Badenhorst: With that, I will conclude the opening remarks and pass the call to Rudi to review our operational results.

Rudi Badenhorst: Thank you, Tristan, and thank you, everybody, for joining our call. It is pleasing to share with you today the strong operational performance during the third quarter, despite the power of challenges in Zambia. I would like to thank the teams in Zambia for their proactive and decisive actions and power management that allowed copper production to continue virtually uninterrupted for the last several quarters. Total copper production for the third quarter was 116,000 tons, a 13% increase over the second quarter. The improved volumes also resulted in a 9% quarter-over-quarter decline in C1 cash costs to average $1.57 per pound.

Rudi Badenhorst: With a strong production year to date, we have increased our copper production guidance for the year to between 400 and 420,000 tons. Kansanchi had a solid quarter, recording its highest quarterly production in copper since 2021 and in gold since 2022. Copper production totaled nearly 50,000 tons in the third quarter, an improvement of well over 8,000 tons from the second quarter as mining from main 15 and main 17 cutbacks allowed access to higher grades. In addition, we maximized mixed tons at higher grade through the moles by swapping the mixed and sulfide milling circuits during the third quarter, and this will continue for the larger part of the fourth quarter.

Rudi Badenhorst: As such, we have increased our copper production guidance above our previous guidance range to between 155 and 165,000 tons. As I noted earlier, gold production at Kansanchi was also strong in the third quarter at 32,000 ounces. This has allowed us to also increase our gold production guidance above the previous guidance range to between 90 and 100,000 ounces for Kansanchi and 120 to 135,000 ounces at the group level. Tension on reported copper production of 58,000 tons in the third quarter, approximately 4,800 tons higher than the previous quarter as throughput continued to improve. The higher throughput was driven by improved fragmentation of all and better performance of the input crushes.

Rudi Badenhorst: Mining performance and throughput is expected to further improve over the remainder of the year with the ongoing development of the Stage 3 Wist and Cutback, which will increase the availability of soft to ore. As such, we continue to expect copper production to be within our guidance range, albeit at the bottom end of the range at 220 to 230,000 tons. Enterprise had its first full quarter of commercial production, producing 4,800 tons of nickel. At the end of September, the nickel plant was turned off for nine days in order to prioritize power for the copper circuit. However, the nickel plant resumed normal operations in October, and production guidance remains unchanged at 17 to 20,000 tons of contained nickel.

Rudi Badenhorst: At Cobripanama, the operation remained under the phase of preservation and safe management throughout the quarter. Inspection frequency of the precious plant has increased from 28 to 56 days; however, startup frequency of the equipment remains unchanged at 14 days. All the major ultra-class mobile equipment is in a maintenance cycle that adheres to the original equipment manufacturer's long-term storage recommendations and includes periodic inspections, as well as scheduled startups. The costs for the PNSM program in Kuro3 were approximately $13 million per month, and I expected to be in the range of $11 to $13 million per month for the remainder of the year.

Rudi Badenhorst: I wish to thank all our employees at Cobripanama and their continued commitment to the operation and maintaining the mine area to the highest environmental standards.

Rudi Badenhorst: As Tristan noted earlier, we had a tragic accident during the quarter. The death of our colleague was profoundly felt by the team at Consenti and across our company. We continued to support the family, and we are committed to applying the lessons learned from the investigations as we seek to ensure the safety of all our colleagues.

Ryan MacWilliam: Thank you, and I will now hand a call over to Ryan to review the financials. Thank you, really. On the market side, the couple price was strong earlier in the quarter, supported by the weaker US dollar and lower interest rates. Prices then pulled back on concerns around Chinese growth, reaching a low of $3.91 in early August. Our prices increased steadily late in the quarter following the announcement of Chinese stimulus measures. Overall, Q3 railed copper prices were 2% lower than Q2. Despite the slightly lower copper price, revenue and EBITDA increased by 4% and 55%, respectively. On the back of the strong operational performance that Rudy described and the resulting higher copper sales and increased gold volumes.

Ryan MacWilliam: Q3 net earnings attributable to shareholders also improved $108 million, returning to a positive position for the first time since Cobrit Panama entered preservation and safe management.

Ryan MacWilliam: On to costs. C1 costs improved by 9% to $1.57 per pound. This improvement was due to higher production across all sites, coupled with lower fuel costs from decreased fuel prices and improved burn rates. As Rudy Interested mentioned, our Zambian electricity costs have increased because of the power shortages and the resulting higher third-party imports. The cost impact of this has been mitigated by strong gold byproduct credits during the quarter. The result of both strong gold production and strong gold prices, put the gold price averaging $2,400 per ounce during the quarter. Additionally, the reduction in inflation that has played out globally in recent months has resulted in some of our input costs tracking favourably compared to the assumptions used in our initial C1 cash cost guidance.

Ryan MacWilliam: We're therefore narrowing the top end of our cost guidance by 10 cents, with our revised full-year guidance range of $1.80 to $1.95 per pound.

Ryan MacWilliam: In order to prudently manage the balance sheet through the construction of S3, we've maintained the hedging approach that we described on our Q2 call. We now have roughly 43% of our copper hedged in the form of zero cost collars through to the end of 2025. Some of our hedges that we previously put in place roll off during the quarter, resulting in a realised hedge gain of $21 million. We've continued to add new collars during the quarter, with an average floor and cap of $4.07 and $4.78 per pound respectively. This takes our current total hedge position to turn 45,000 tonnes of collars, with an average floor and cap of $4.18 to $5.01 per pound.

Ryan MacWilliam: Next debt increased this quarter by $154 million to $5.6 billion. This was driven by capital expenditure on S3 and increased working capital levels. This increase in working capital was predominantly a result of sales made towards the end of the quarter, and cash only being received for these sales after the quarter end. The quantity remains strong at $1.5 billion, comprising of $693 million in cash and $830 million of undrawn revolver. It was also pleasing to successfully complete the amendments and extension of the Trident Facility on October 15th, with repayments now commencing in 2026 after 2028. This frees up $4.25 million in the quality in the coming year, while we focus on delivering S3.

Ryan MacWilliam: We also continue to review the merits of a sale of CLC and a minority investment into our Zambian business. This is consistent with our broader strategy. We're open to partnerships in Zambia and across the group, if it creates strategic value for our business and host countries.

Ryan MacWilliam: As these discussions are currently underway, we'll not be making further comments in this regard.

Ryan MacWilliam: That concludes the finance section.

Tristan Pascall: I now hand the call back to Tristan. Thank you, Ryan.

Tristan Pascall: Before handing the call over for Q&A, I'm excited to share with you the progress that has been made at the Consentie S3 expansion since our last update. During the quarter, the team at site completed the assembly of the Stagg and ball mills, and installation of the gearless mill drives have commenced. System configuration of the plant control system has been completed for the primary circuit, and work is now focused on ancillary systems and service. Services. In our presentation deck, you will see other areas of progress, including installation of the flotation cells, direction of the pebble conveyors, and the primary crusher, all of which remains on schedule.

Tristan Pascall: The focus on site has now shifted to bolt piping and electrical installation works. Commissioning activities have started in the 33kV distribution substation, which is scheduled to be energized in the fourth quarter. The plant simulator is now on site, and operator training is expected to start imminently. We expect that all required equipment will be on site by the end of November. We have been focused on supplementing manning levels, bringing in the additional manpower that will be needed for the installation of equipment over the coming months as we commission S3. Our operational readiness team is in place at Consanshi and already working with our project team to facilitate a smooth ramp-up on completion of the construction phase.

Tristan Pascall: There is a lot of activity on site, and we are on track for first production in the second half of 2025.

Tristan Pascall: Thank you for your attention.

Operator: This brings our prepared remarks to an end, operator. We can open the call for Q&A.

Operator: Certainly, we'll now begin the analyst question as your session. Analysts are permitted to ask one question and one follow-up, and are welcome to rejoin the Q if they have more. To join the question Q, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speaker phone, please pick up your handset before pressing any keys. To withdraw your question, press star, then two.

Orest Wowkodaw: Our first question is from artist Walk It Out with Scotia Bank. Please go ahead. Hi, good morning. It sounds promising that it could be a pathway to a discussion, I guess, in the new year with the new Panamanian government on restarting co-op Panama. I'm just curious, do you think the environmental audit has to be completed to begin that process, and can you give us an update on when you think that's going to happen? And then also wondering about what the status is of the existing concentrate sitting at Co-op Panama.

Tristan Pascall: Hi, Ores.

Tristan Pascall: Thanks for the questions. So, in terms of the environmental audit, yes, the government's comments, the president's comments in particular, have noted that they would like to see that audit happen. We expect in the timetable that they've been providing was by the end of this year, although at this stage we haven't seen that environmental auditor appointed as yet. Currently, our understanding is that the terms of reference for that audit are being prepared, and that they would then appoint the auditor.

Tristan Pascall: Our hope is that can still be completed on time and that the audit would then be in place for the timing that we talked about, and the present has been made clear in terms of a restart early next year or at least dealing with the issue early next year. In terms of your question on the concentrate, that material is sitting at the port: 121,000 tons. It's in reasonable condition in terms of copper content, but we remain concerned about degradation of the sulfur in that material, and that does continue to pose some hazard environmentally.

Tristan Pascall: It is in the best interest of the environment and everyone there to get that material shipped off. Our understanding that it is the government's intent to do that through approval of the Preservation Safe Management Plan would allow that material to move, and we think that's important to happen as soon as practically can be it.

Ralph Profiti: Thanks, Tristan. The next question is from Ralph Profiti with eight capital. Please go ahead. Thanks, operator. Good morning, Tristan. Just wondering, and maybe Rudi can chime in here.

Rudi Badenhorst: As the wet weather comes in at Sentinel in Q4, just wondering what the conditions of the benches are in sort of utilizing. Using some of the terrorist mining initiatives, sort of what state are we in there and just wondering if that's kind of driving the bottom end of the range as we think about conservatism into Q4. Thanks, Ralph.

Rudi Badenhorst: Rudi, do you want to take that question? Yeah, no problem. Hi, Ralph. Thanks for the question. Certainly, well, let's start off with the wet season hasn't started in Zambia yet. At the end of this week, we're going through the 60th birthday anniversary of Zambia with independence, and normally that's when the rain starts. But I can assure you, we're well prepared for the wet season. It's been a considerable amount of capital that has been spent on the watering activity and setting up the put into such a way that allows for the handling of water in the event that we have an exceptional wait season.

Rudi Badenhorst: We're quite confident that the measures that we've taken are adequate enough, and then mining is set up to deal with it. As far as the back end of production is concerned at central, sure, yes, surely we are always taking the wet season into consideration when in our plans and our budget. But also, you know, we are taking necessary maintenance measures as well during the quarter that impacts that. Gotcha.

Ryan MacWilliam: Hopefully.

Ryan MacWilliam: Yeah, Ryan, can you help us out with capital spending versus budget at S3? Sort of the remainder of 24 and maybe into 25, you know, Tristan's comments about ramp up and labor activities and manpower just wanting to whether or not we're seeing inflationary pressures there. Sure off. So we've spent $700 million on S3 to date. So that means we've got $550 million to go, as Tristan noted. We're on budget of the $550 million to go, with $200 million of that is already committed. That really relieves a balance, which is still to be priced. But in most of those contracts, we have visibility and what we expect the pricing to be.

Ryan MacWilliam: So I think that all of that gives us the confidence, and Tristan's remarks about the fact that the project remains on track and on budget within that $1.25 billion.

Ian Rosso: Next question is from me and Russell with Barclays. Please go ahead. Thanks. Hi, Tim. Just a question on the S3 expansion. Tristan, you mentioned in your remarks that first production is expected in the second half of 2025.

Tristan Pascall: If I compare that to some of the previous releases, the wording was mid 2025. Just wanted to get some clarification if there has been any delay to the target for first production. And then they can be sticking to Consanshi just on the gold production in the start of the year as part of your three-year production outlook. You cut gold production guidance. It's Consanshi by 30% for this year and 25% next year. And then the increase today is essentially sort of taking that production at Consanshi back to where the guidance was last year. Can you provide a bit of details what's resulted in these changes and whether it's mind plan, I guess you mentioned in the release.

Rudi Badenhorst: It's great related, but just how should we think about that for next year's figure?

Tristan Pascall: Thank you. Thanks, Ian. I'll let Rudi take the second part of that question on goal production and how that's come about through the swapping of the mills from soft-eyed to mixed. But in terms of your first question on S3 timing, I think Ian, our response to that is we have the opportunity now, with greater clarity to the end of the project, to be more specific. So I wouldn't call it a change in outlook. It's more that we're being more specific on how we see the project land. And that is we expect completion by mid-year, and then we're really focused now on operationalising and ramping up through the second half of the year.

Tristan Pascall: So our notes really speak to that how we see first or start and first production come through and ramp up through the second half of the year. But broadly speaking, we're comfortable with the project delivering on the timetable we've been outlining.

Rudi Badenhorst: Rudi, would you like to just speak there on the goal and the situation for the year? Hi Ian, good to hear from you again. As you would be aware, Ian had consented that the goal grade reasonably tracks up a copper grade and where we currently mining and the upper benches are the main 15 cutbacks. You're seeing slightly higher mixed or grades, which also necessitated or gave us the opportunity to swap the milling circuits. It's meant that we have seen a higher tonnage going through the plant of mixed grade, and obviously the goal to companies that.

Rudi Badenhorst: And at the same time during the third quarter we installed some additional melts and concentrates that can sent you and brought others online, which also resulted in the additional additional gold. As far as 2025 is concerned, you know, we'll look at that when we provide our guidance in the early in the year.

Myles Allsop: Next question is from Miles Alsop. Would you be a please go ahead? Yeah great thanks just going back to Cobra Panamar. Could you just give us a quick update in terms of speed to remobilize? If you were to get approval tomorrow, what would be the likely timing to be able to start ramping up? And you know, we'll be helpful to get a sense as to why you think the government has not approved the preservation and safe management plan. The kind of sense last quarter was that it was imminent, and three months later it still sounds like it's imminent.

Tristan Pascall: Do you know, do you have a better understanding as to why it's dragging, and will we be having the same conversation in three months' time?

Tristan Pascall: That's the first question. Thanks, Miles. Yeah, so look in terms of ramping Cobra Panamar back up even when that decision comes through. Yeah, I think what we would, how we would respond to that is certainly at this time, it's really about bringing people on and bringing suppliers back online. There's a lot of Panamanian suppliers that are sitting idle and waiting. There's a lot of employment in Panamar that's sitting idle and waiting. There were some 4,500 redundancies made at the site. We currently speak to around 3,000 of those people every month, and most of those are ready to come back to work immediately. But I think as time drags on, that gets harder to get people back.

Tristan Pascall: It's just a natural attrition there, and so I think if it does delay too much later into the second half of next year, that gets more challenging. In terms of how we think the oval ramp up will run, we would be able to start up one train or a second train in a fairly straightforward manner, but then it's going to take time to build out capacity and so probably would take in the order of six months to build out to the full level. In terms of the second part of your question on the preservation and safe management plan, we have felt in country and the conversation seems to be that it's imminent. Comments from various ministers who are involved in that decision-making process have been public in saying that it's imminent.

Tristan Pascall: And we continue to receive that guidance on the ground there that it is imminent. Certainly, what we think is dragging on now is that the government has made clear the president has made clear they're focused on the Social Security. The reform at the current time and that is taking a lot of attention. Nonetheless, you know, as I said, the public comments have been around imminent approval because that was important in terms of managing the environmental topic at Covert Panama. And that's in everybody's interest. That sits well outside a commercial interest or the mind's interest or the government's interest.

Tristan Pascall: That's in the interest of everyone that those environmental, the environmental security, the asset integrity of the site is maintained.

Tristan Pascall: And so it's therefore our view that it should be approved without any further delay.

Lawson Winder: The next question is from Lawson Winder with Bank of America Security. Please go ahead. Thanks for a much operator. The more interesting, Rudy and Ryan, excellent Q3 results in Zambia. And thank you for the update.

Tristan Pascall: It's like I could ask about the Zambia and asset sale process just in light of the recent news and of another potential offer for a minority interest. Would you be able to characterize the nature of that sale process? For example, you know, are there still new bids coming in, or is the process closed? Are you in a final phase, perhaps, with a short list of bidders? And, you know, can you give us an idea of maybe how many bidders might be involved? And then ultimately, what will the criteria be if that makes a, or sorry, first quantum makes a decision to accept an offer?

Tristan Pascall: Sure, Lawson. Thank you so much. Thank you very much.

Rudi Badenhorst: Ruff, which means that we will continue to mine what's in front of the shovels; we won't be chasing grade, and you know it's all about setting up the terraces and getting those shovels in a position where they can mine effectively and the trucks can roll effectively. That's where St. Hinton, I'll ease that now, and we're quite confident that over the preceding year, we'll see those rates of five million plus on the monthly basis happening a lot frequently.

Bryce Adams: The next question is from Bryce Adams with CIBC. Please go ahead. Good morning or good afternoon, everyone. Thanks for the update, and thanks, Tristan, for the comment around Panama. My question is a follow-up on the earlier Panama questions. If the environmental order is not yet started and the order isn't appointed, so this means the discussions with the government are more likely to be second half of next year rather than earlier in the year. Understanding an audit might take up to six months to complete. The timeline here, things like those government conversations could take a little longer.

Tristan Pascall: Just wondering if I have it wrong, but it appears like that audit might conclude by mid next year. That's all I had. Thanks a lot.

Tristan Pascall: Yeah, Bryce, thanks for the question. I think we need to see what the terms of reference are for the audits and how that would work. I mean certainly, Cover Panama has been the subject of intense audit all through last year and this year. The audit result that we had as an operating asset from August to October was 100% compliance on all the environmental and biodiversity requirements of the 300 and 71 commitments under the SIA, and it was only elements of the health and safety where some improvements were warranted and were underway. Subsequent to the Supreme Court decision and why we were closed, we brought in independent orders to review, and the government itself brought in auditors when the mine was in suspension. Again, the independent audit was demonstrated a high level of compliance, and the government ordered itself continued to demonstrate 100% compliance on the environmental and biodiversity requirements under the SIA.

Tristan Pascall: So we feel good; we feel confident about the position of the mine, and that any independent audit looking at it would feel the same way. They would probably point out areas, and we're quite happy that those areas are pointed out and that we get everything to the highest possible standards. But we'll just need to see what those terms of reference are in order to understand the timetable that you refer to.

Tristan Pascall: Beyond that, I can only point to the President's comment and his most recent comments in New York to say that they would be looking to deal with the issue early in 2025.

Operator: The next question is from Pardon me.

Operator: I have to manually update.

Gabrielle Simoles: But the next question is from Gabrielle Simoles, which Goldman Sachs. Please go ahead. Hi, thanks for taking my question. I'm going to end up being on the, on the power situation that you mentioned. You expect minimal resurgence in the fiscal core, but it'd be interesting to be familiar with looking a bit further out, right? So what would you see in terms of disruption? I think that she runs up its new concentrator, how the impact that could have. And if there are any measures, you can look at the country in terms of power generation, or in terms of infrastructure to improve the situation seems already extended drought, or in terms of future droughts in the coming years.

Tristan Pascall: Thanks, Gabrielle. Yeah, so certainly the situation with El Nino had an impact on the country, not just on power, but on food security, and First Quantum has been supporting Zambia. We have trucked some 4,000 tonnes of maize into the country to support the government's efforts on food security, and on the power situation we've been putting in place the alternative sourcing of power, and that is from imported sources, and we have three providers of that imported power mostly from Mozambique and from Namibia to augment the in-country supplies, and so at this stage we feel good about this season, and as Rudi says, the rains are expected to imminently for the wet season. It does look like in terms of your question, looking ahead, that the forecasts are that the El Nino is already flipped into La Niña, although a milder La Niña than probably was earlier expected, mid-year, and the current outlook is that La Niña is a mild La Niña, and that means rainfall, a more normal rainfall. However, we do continue to prepare for both scenarios, that is a heavy La Niña, lots of rain, and as Rudi said, we've done the work on preparing for de-watering in the mines, be able to cope with that heavy situation, but also the other scenario which is light to rain, and that would mean that mining conditions are good, but that we might see prolonged disruption to power.

Tristan Pascall: So the contracts that we've placed to external parties provide for that optionality; they provide for the ability to continue those imports, and we feel comfortable that the level of import would allow us to start S3 without substantial impact on our production expectations. Beyond that, we continue to work with the Government Utilities Esco in supporting infrastructure in the country. We have projects online with them to support the stability of the grid in static valve compensation over the next two years, and we have projects with them to support increased renewable energy in the country to some 480 MW of power to come in from wind and solar sources, and beyond that to support them in purchasing power directly, as they go from surrounding countries, including some 250 MW from South Africa that's coming through in the next month or so.

Ryan MacWilliam: I hope that covers the question, Gabriel, but in terms of outlook, we believe that we've built in the flexibility and optionality that we can cover any potential shortfall in power.

Ryan MacWilliam: Thank you very good. Thank you.

Ryan MacWilliam: If I could just hand you another question on your head, you mentioned that around 43% of whom I'm thinking of expected production; 80% of them are new sources, plus 5% to 25%. I just want you to understand how you're thinking about this strategy going forward. Around 50% of production has earned them on their cost available, maybe forward, or should the industry use that policy? Thank you.

Ryan MacWilliam: Ryan, would you take a follow-up question, please? So I'm hedging strategy, broadly at the moment we're targeting having around 40% to 50% of our production hedged through zero cost colours up to the end of 2025, and as hedges roll off, so you've seen us replace them with new hedges as we did in Q3. As we come into the back end of this year and into early next year, we'll decide whether or not to extend that into 2026, and that decision will be driven by where the copper price comes to, you know, how we're going on Zambia, and a variety of other factors. But for now, the plan is to stay between 40 and 50% hedged through to the end of 2025.

Dalton Baretto: The next question is from Dalton Baretto with Canacred Unity, please go ahead. Thank you, I'll hire you just in that team. I'm thinking past S3 in your build pipeline to talk about. Under this new urgent time, I understand this in very specific timelines in terms of getting the project approved by the READY and then some specific timelines around capital spending, and many of you just update us in terms of how you're thinking about talk about as it relates to the READY regime.

Tristan Pascall: Thank you. Hi Dalton, yeah, thanks for the question, and yeah, it's pertinent to speak about TAKA TAKA. We saw a large delegation from Argentina at LME week, and I think certainly that reflected a lot of confidence that the country is developing in terms of the investment promotion legislation that was passed as part of the Omnibus legislation. We've seen READY, and certainly for us it provides an important step forward for TAKA TAKA. That project, we continue to like the project, potentially deliver perhaps 250,000 tons of copper a year for the first decade of an overall life that's 30 years plus.

Tristan Pascall: We're not at a sanction decision stage yet. We, the timelines of the READY, that an application is required within the next two years and there is a possibility that it can be extended by one year, but at the moment the application window is around, it's two years. In that time, we would also need to see the environmental permit for TAKA TAKA come through and the water permits, and in that timetable, we would also need to be working on the financing pathway for the project. So we see those three as parallel work streams and that need to develop alongside each other in the timetable that's provided for under the READY.

Tristan Pascall: Thank you, Tristan. As my fellow, you touched on financing, and I was wondering, as you think about financing and TAKA TAKA, whether it should be there is on the table or even whether this plays into potentially, it should be on the table.

Tristan Pascall: Thank you. Sure, Dalton. I think that what we see in Argentina is at level of confidence developing, and I think that needs, that will continue to do help as we see stability come through over the coming months and during that period for the application of READY. During that time, we think the country will continue to open up for the right partners. We've been open; Ryan made comments about our approach to partnership, that is, that we see the benefit for that. We're doing that on our Lagrange project where we partner with Rio Tinto in Peru. We're doing that, and we're going through a process in Zambia where we look at partnership, and in fact, co-patternmar was a partnership with the Korean government.

Tristan Pascall: So, Argentina itself we think and lend itself and that the right partners will gain confidence and gain interest in the country in order to develop a financing pathway for it. And we think that the timetable that's outlined in the READY, that two years is appropriate to consider and work through that.

Operator: of our forces.

Craig Hutchison: Next question is from Craig Hutchison with QD Cohen. Please go ahead. Good morning. Thanks for taking my question. Just a question around Q3. You guys obviously had a very strong Q4. You had a very strong Q3 results. But the guidance that kind of implies that you'll be somewhere in the range of 80 to 100,000 tons for Q4. Yet the setup seems pretty good at sentinel-less software or a shift to more mixed oxidist like Kinsanchi. Can you just give some context as to where you're going to see that change in terms of production, the lower guidance for Q4.

Rudi Badenhorst: Is that being driven by lower grade to Kinsanchi, or is there some plant maintenance shutdowns in the quarter? Thanks.

Rudi Badenhorst: Rudy, would you like to take that question? Thanks, Craig. Rudy? Yes, thanks. Hi, Craig. You hit the nail on the head. It's primarily lower grade to Kinsanchi, and that's driven by normalization of the mixed and sulfide circuits where we swap back with mixed material going back towards its original circuit and then doubling up again on the tonnage throughput on sulfide, which generally runs at the lower grade. So that's pretty much driven through there. The Stage 3 cut back at Sentinel. Yes, it's nice and softer all. It runs through the months a lot easier. But as we are still in the upper reaches of that cut back, it is relatively tarnished and weathered material.

Rudi Badenhorst: So it doesn't float as well as your primary sulfides. But yeah, primarily driven by Kinsanchi and swapping other circuits. Perfect.

Rudi Badenhorst: Thank you.

Ian Rosso: The next question is from Ian Rosso with Barclays.

Ryan MacWilliam: Please go ahead. Thanks for the follow up. Just a quick one on working capital. Ryan, you mentioned you've sold quite a bit of material towards the end of the quarter and received the cash post quarter-end. Obviously, prices are up a bit versus the quarter average, but just wanted to get a sense of how much of that $200 million working capital build you would expect to come back for that to normalize. Sure, Ian, so of the $200 million working capital build, $100 million of that was an increase in receivables; about $40 million of that was the AT receivable, which came in just after the quarter end.

Ryan MacWilliam: And then, of the balance of $60 million receivables due to sales, we probably got about $20 to $30 million that came in just after quarter end. So net about $60 million of the $100 million came in just post-quarter end rather than getting in before the end of the quarter.

Ryan MacWilliam: Thanks.

Ryan MacWilliam: And just on the inventory side, because you're still tracking sales quite a bit behind production so far this year, is there some expected on working on the inventory working capital? Not significantly, we actually had low inventories at the end of Q2, so that's why you saw it slightly move the other way through the end of this quarter. So maybe we'll get into trees a bit lower through the back end of the year, but I shouldn't assume a big release from a working capital perspective coming into the year end. I mean, a lot of that inventory is still sitting in that Cobra Panamau concentrate.

Myles Allsop: The next question is from Myles Allsop. Would you be a, please go ahead? Yes, thanks for the follow-up. So, just a couple of things first of all, again, going back to the preservation segment, how much should we put in our full cast for the cost in 2025? Should we keep running it around $12 million a quarter, or at what stage will you take it a step lower than that, you know, so that'd be helpful. And then going back to the Zambian power question as well, do you find as, yeah, how much power you consume currently, and how much that will lift by with S3, and then, you know, if you're 50% covered, where would you be, you know, when S3 is running?

Tristan Pascall: Thank you. Thanks, Myles.

Tristan Pascall: I might ask Rudi to take that second question on the specifics of the power draw in Zambia at the moment, and then with S3. But in terms of your first question on the cost of the preservation safety plan or the plan that we're running at the moment, as Rudi outlined, we were at around $13 million a month through the course of Q3, and we're saying about $11 to $13 million. The tension there is to make sure that we ensure the environmental security. That covers about 1,400 people on site; that's the highest proportion. Is that labor cost? And it is appropriate that we continue to maintain that dedication and that level of compliance, but certainly, you know, there is a law of gravity, and we can't withstand that forever. We really do need to see, you know, the sources of funding for that to come through, and obviously, the concentrate in the shared is a source that can be applied and support all of the environmental works that need to happen.

Tristan Pascall: You know, to date, the company's been doing that just on the basis of ensuring good compliance, but ultimately, we do need to see that come through. So, I think we will get to a point where we need to go to a next step in terms of reducing that cost, and obviously, that's around people. And, you know, we're talking to the government around the timing and how that can work. The level of engagement is increasing, and it is important that we get, you know, those answers so that we can address those questions as to what is the right level of people and performance going forward so that we can manage that cost, manage the level of employment there at the site, but also ensure that the reason that the legacy, that Panama, you know, has to bear there, and all of that is part of the conversation that we're seeking engagement, having engagement on. And that's why the preservation and safe management plan is important and why we continue to...

Tristan Pascall: to push in and request that that's approved as soon as possible.

Rudi Badenhorst: Myles, I jump in here on the question on power. Currently, the up power draw on the assets in Zambia is around about 315 NW. Obviously, all of that is written by a power supply agreement by Zesco, and with currently with the drought, as Tristan mentioned earlier, we've obviously made various efforts to secure imported power directly through third party providers. At the moment, we're importing about 190 NW of that total requirement, and the rest is provided by the state utilities as per our agreements. When S3 comes online next year through commissioning and full ramp up, it's another 85 to 90 NW, but we've already highlighted in our Q2 call, secured power to ensure that the suitable start-up and maintaining of production when S3 is running.

Operator: This concludes the question-and-answer session.

Tristan Pascall: I'd like to turn the conference back over to Tristan Pascall for any closing remarks. Thank you, operator. I'd like to thank everybody for joining us today and for your interest, and we look forward to speaking to you again at our next update. Thank you.

Operator: It brings to a close today's conference call. You made this.

Operator: Thank you for standing by.

Thank you for standing by this is the conference operator welcome to the first quantum Minerals Ltd third quarter 2024 results conference call.

Operator: This is the conference operator.

Operator: Welcome to the First Quantum Minerals Limited 3rd Quarter, 2024 Results Conference Call. As a reminder, all participants are in listen-only mode, and the conference is being recorded.

As a reminder, all participants are in listen only mode and the conference is being recorded.

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Bonita To: I would now like to turn the conference over to Bonita To, Director and Vesture Relations. Please go ahead. Thank you, Gillian, and thank you everyone for joining us today to discuss our third quarter results. During the call, we will be making forward-looking statements. As such, I encourage you to read the cautionary notes that accompany this presentation, our MDNA, and the related news release. As a reminder, the presentation is available on our website and that all dollar references are in US dollars unless otherwise noted.

Speaker Change: I would now like to turn the conference over to Panera, two <unk> director of Investor Relations. Please go ahead.

Speaker Change: Thank you Gillian and thank you everyone for joining us today to discuss our third quarter results journey.

Speaker Change: During the call we will be making forward looking statements as such I encourage you to read the cautionary notes that accompany this presentation, our MD&A and the related news release.

Speaker Change: As a reminder, the presentation is available on our website and that all dollar references are in U S dollars unless otherwise noted.

Bonita To: On today's call, our Tristan Pascal, our Chief Executive Officer, Ryan McWilliam, our Chief Financial Officer, and Rudy Badenhorst, our Chief Operating Officer.

Speaker Change: On today's call are some Pascal our chief Executive Officer Wind Mcwilliam, our Chief Financial Officer, and really gotten horse, our chief operating officer, and with that I will turn the call over to Kristin for opening remarks.

Tristan Pascal: And with that, I will turn the call over to Tristan for opening remarks. Thank you, Bonita, and thank you everybody for joining us today for our third quarter updates. This is pleasing to report strong operational performance from the Zambian operations during the quarter, till which Rudy will cover in his remarks. Over the last several quarters, the work by the teams at site has placed us in today's position to deliver on the upper end of the copper production guidance range and the lower end of the cost guidance that we provided earlier this year.

Kristin Horse: Thank you Vanessa and thank you everybody for joining us today for our third quarter update.

It's pleasing to report strong operational performance from the Zambian operations during the quarter to which really will cover in his remarks.

Kristin Horse: Over the last several quarters the work by the teams thoughts have placed us in a nice position to deliver on the upper end of the copper production guidance range and the lower end of the cost guidance that we provided early this year.

Tristan Pascal: While the Zambian operations had a successful quarter with production, it is with deep regret that we announce the death of a colleague at Constanti towards the end of the quarter. The health and safety of our colleagues across the business is our top priority. This includes providing all necessary support for both our employees and their families during this difficult time. I would like to extend my deepest sympathies to the family and friends impacted by this tragedy. In Zambia, the country continued to experience power restrictions during the quarter. However, our teams at Constanti and Trident were quick to respond with operational adjustments to mitigate the impact of these restrictions, resulting in minimal disruptions to copper production.

Speaker Change: Well the Zambian operations had a successful quarter with production. It is with deep regret that we announced the death of a colleague at consent she towards the end of the quarter.

Speaker Change: The health and safety of our colleagues across the business as a top priority. This includes providing all necessary support for both our employees and their families. During this difficult time.

Speaker Change: We'd like to extend my deepest sympathies to the family and friends impacted by this tragedy.

In Zambia, the country continued to experience power restrictions during the quarter. However, our teams at Constancia in Trident were quick to respond with operational adjustments to mitigate the impact of these restrictions, resulting in minimal disruptions to copper production.

Tristan Pascal: In the near term, with existing contracts covering approximately 50% of our power needs through to April 30, 2025, we expect to have sufficient power to avoid operational interruptions in the remaining quarter of the year. These agreements include options for extension, providing flexibility in our power sourcing strategy. We continue to be proactive in our power management efforts, recognizing the importance of power stability, not just for the mining sector but also for Zambia's broader civil society. And as such, we are working constructively with the government to develop long-term solutions that support both industry and the country's energy security.

Speaker Change: In the near term with existing contracts covering approximately 50% of our power needs through to April 32025, we expect to have sufficient power to avoid operational interruptions in the remaining quarter of the year.

Speaker Change: These agreements include options for extension, providing flexibility in that power sourcing strategy.

Speaker Change: We continue to be proactive in that power management, if it's recognizing the importance of past ability not just.

Speaker Change: For the mining sector, but also for Zambia as broad a civil society and as such we are working constructively with the government to develop long term solutions that support both the industry and the country's energy security.

Tristan Pascal: Our efforts reflect our broader commitment to Zambia's economic and energy stability, ensuring that essential services and industries remain operational whilst mitigating the impact of power shortage.

Our efforts reflect our broader commitment to zambia's economic and energy stability.

Speaker Change: During the essential services and industries remain operational.

Speaker Change: Is it getting the impact of power shortages.

Tristan Pascal: Actors. For the medium term, the company is in advanced discussion to receive off-take from three independent power producers for solar and natural gas projects that will add nearly 800 megawatts in country power generating capacity. These projects are scheduled to come online in 2025 and will ensure that we can secure sufficient power for the commissioning and ramp-up of the S3 expansion of Consansi. In addition, the company is looking at direct off-take arrangements with independent renewable power producers that are expected to be commissioned in 2027-28 that will add an additional 480 megawatts of power generation capacity. With regards to longer-term solutions, we remain supportive of the commitments made by the country to ensure future energy resilience.

Speaker Change: The medium term the companies even in advanced discussions to receive off take from three independent power producers for solar and natural gas projects that will add nearly 800 megawatts in country power generating capacity.

These projects are scheduled to come online in 2020 five and will ensure that we can secure sufficient power for the commissioning and ramp up of the S. Three expansion are concerned she.

Speaker Change: In addition, the companies looking at direct offtake arrangements with independent renewable power producers that are expected to be commissioned in 'twenty 27, 28 that will add an additional 490 megawatts of power generation capacity.

Speaker Change: With regards to longer term solutions, we remain supportive of the commitments made by the country to ensure future energy resilience on this front, we are actively collaborating with GSK on critical projects aimed at expanding and stabilizing the national grid, including installation of static felt compensated in the north western problems.

Tristan Pascal: On this front, we are actively collaborating with Zesco on critical projects aimed at expanding and stabilising the national grid, including installation of static-var compensators in the Northwestern Province.

Speaker Change: <unk>.

Tristan Pascal: Staying in Zambia, the 2025 national budget was presented on September 27 by the Minister of Finance and National Planning. The Minister reaffirmed his commitment to maintaining stable and predictable tax policies to encourage investment, and as such, there were no significant changes to the mining tax regime.

Speaker Change: Damian Zambia, the 2025 National budget was presented on September 27 by the Minister of Finance in National planning.

Speaker Change: The minister reaffirmed its commitment to maintaining stable and predictable tax policies to encourage investment and as such there were no significant changes to the mining tax regime.

Tristan Pascal: Over to Panama, we continue interactions with various levels of government, stakeholder, and community groups in the country. We have not yet met with the new President, who has made public statements that the issue of the Co-Brit-Banama mine will only be addressed in early 2025. In the meantime, we continue to work on the approval of the Preservation and Safe Management Program. The plan was submitted on August 27, along with a formal presentation to the Ministry of Commerce and Industries on September 25. But the plan is still pending in government approval, and therefore aspects of the plan have not yet been implemented by the company.

Speaker Change: It's Panama, we continue interactions with various levels of government stakeholder and community groups in the country.

We have not yet met with the new president.

Speaker Change: Who has made public statements that the issue of the cupboard minimum mine will only be addressed at nearly 2025.

In the meantime, we continue to work on the approval of the preservation and Safe Management program. The plan was submitted on August 27, along with a formal presentation to the Ministry of Commerce in industries on September 25.

Speaker Change: The plan is still pending government approval and therefore aspects of the plan have not yet been implemented by the company.

Tristan Pascal: At Co-Brit-Banama, however, maintaining the integrity of the site remains of utmost importance to the company, and really will review the maintenance works that we continue with there. In parallel with the work at site, the company is also embarked on a comprehensive program of public outreach to provide transparent information regarding the mine to the Panamanian people. As part of the program, we have presented at universities, schools, and several public events. The publication of our virtual tour online has attracted a significant number of visitors, curious to further understand the role of responsible mining in Panama. And we continue to engage closely with our key stakeholders, including workforce, local communities, and suppliers.

Speaker Change: At Cobre, Panama, however, maintaining the integrity of the site remains of utmost importance to the company and really will review the maintenance works that we continue with that.

Speaker Change: In parallel with the work and saw it. The company has also embarked on a comprehensive program of public outreach to provide transparent information regarding the mine to the Panamanian people.

Speaker Change: That's part of the program, we presented at universities schools and several public events.

Speaker Change: The publication about virtual tour online.

Speaker Change: Has attracted a significant number of visitors curious to further understand the role of responsible mining in Panama.

Speaker Change: And we continue to engage closely with our key stakeholders, including what our workforce local communities and suppliers.

Tristan Pascal: With regards to arbitration, our ICC arbitration continues to be the most advanced, with a final hearing scheduled for September 2025. Under the FTA arbitration, the company has three years from the date of Panamanian breaches the FTA to file its arbitration plan. We continue to maintain the position that arbitration is not our preferred outcome, and we remain committed to dialogue with a new government and to be being part of the solution for the country and the people of Panamanian.

Speaker Change: With regards to arbitration.

Speaker Change: C. C arbitration continues to be the most advance with a final hearings scheduled for September 2025.

Speaker Change: Under the S. T. A arbitration the company has has three years from the date of Panama breaches. The F D. A to fall its arbitration claim.

Speaker Change: We continue to maintain the position that arbitration is not our preferred outcome and we remain committed to dialogue with the new government tend to be being part of the solution for the country and the people of Panama.

Tristan Pascal: Along with our third quarter results, the company announced the appointments of Mrs. Montalvo and Mr. Jair to the Board of Directors. I'm pleased to welcome both to the Board, both of whom bring several decades of industry experience with them, and with Anita's experience in social affairs in Latin America and Africa and Kevin's deep knowledge of the copper markets.

Along with our third quarter results the company announced the appointment of Mrs. Montalbo and Mr. <unk> to the board of directors I'm.

Speaker Change: I'm pleased to welcome them both to the board.

Speaker Change: Both of whom bring several decades of industry experience with them and we know what needs is experiencing social affairs in Latin America, and Africa, and Kevin's deep knowledge of the copper market.

Tristan Pascal: With that, I will conclude the opening remarks and pass the call to Rudi to review our operational results.

Speaker Change: With that I will conclude the opening remarks and pass the call to Rudy to review our operational results.

Speaker Change: Okay.

Rudy: Thank you Justin and thank you everybody for joining our call.

Rudy: It is pleasing to share with you today the strong operational performance during the third quarter. Despite the challenges in Zambia.

Rudy: I would like to thank the teams in Zambia for the proactive and decisive actions and power management that allowed copper production to continue virtually uninterrupted for the last several quarters.

Rudy: Total copper production for the third quarter was 116000 tons, a 13% increase over the second quarter.

Rudy: The improved volumes also resulted in a 9% quarter over quarter decline in C. One cash costs to average $1 57 per pound.

Rudi Badenhorst: With a strong production year to date, we have increased our copper production guidance for the year to between 400 and 420,000 tons. Kansanshi had a solid quarter, recording its highest quarterly production in copper since 2021 and in gold since 2022. Copper production totaled nearly 50,000 tons in the third quarter, an improvement of well over 8,000 tons from the second quarter as mining from main 15 and main 17 cutbacks allowed access to higher grades. In addition, we maximized mixed tons at higher grade through the moles by swapping the mixed and sulfide milling circuits during the third quarter, and this will continue for the larger part of the fourth quarter.

Rudy: With a strong production year to date, we have increased our copper production guidance for the year to between 400 and 420000 tonnes.

Concern she had a solid quarter recording its highest quarterly production in copper since 2021.

Rudy: In gold since 2022.

Rudy: Copper production totaled nearly 50000 tons in the third quarter.

Rudy: An improvement of well over 8000 tons from the second quarter.

Rudy: Mining from 915, and lane 17, cutbacks allowed access to higher grades.

Rudy: In addition, we maximized nick's tonnes at higher grade through the most by swapping the mixed on sulfide milling circuits during the third quarter and this will continue for the larger part of the fourth quarter.

Rudi Badenhorst: As such, we have increased our copper production guidance above our previous guidance range to between 155 and 165,000 tons. As I noted earlier, gold production in Kansanshi was also strong in the third quarter at 32,000 ounces. This has allowed us to also increase our gold production guidance above the previous guidance range to between 90 and 100,000 ounces for Kansanshi and 120 to 135,000 ounces at the group level. Tension on reported copper production of 58,000 tons in the third quarter, approximately 4,800 tons higher than the previous quarter as throughput continued to improve. The higher throughput was driven by improved fragmentation of all and better performance of the input crushes.

Rudy: As such we have increased our copper production guidance above our previous guidance range to between 155 and 165000 tons.

Rudy: As I noted earlier gold production at Constancia was also strong in the third quarter at 32000 ounces.

Rudy: This has allowed us to also increase our gold production guidance above the previous guidance range.

Rudy: To between 90 and 100000 ounces for consensus.

Rudy: And 120 to 135000 ounces at the group level.

Rudy: It's an old reported copper production of 58000 tons in the third quarter.

Rudy: Approximately 4800 tons higher than the previous quarter as throughput continues to improve.

Rudy: The higher throughput was driven by improved fragmentation of all and better performance of the input crushes.

Rudi Badenhorst: Mining performance and throughput is expected to further improve over the remainder of the year, with the ongoing development of the Stage 3 Wist and Cutback, which will increase the availability of soft to ore. As such, we continue to expect copper production to be within our guidance range, albeit at the bottom end of the range at 220,000 to 230,000 tons. Enterprise had its first full quarter of commercial production, producing 4,800 tons of nickel. At the end of September, the nickel plant was turned off for nine days in order to prioritize power for the copper circuit. However, the nickel plant resumed normal operations in October, and production guidance remains unchanged at 17 to 20,000 tons of contained nickel.

Mining performance and throughput is expected to further improve over the remainder of the year.

Rudy: The ongoing development of the stage, three Wisden cutback, which will increase the availability of softer ore.

Rudy: As such we continue to expect copper production to be within our guidance range, albeit at the bottom end of the range at 220 to 230000 tons.

Rudy: Enterprise had its first full quarter of commercial production producing 4800 tonnes of nickel.

Rudy: At the end of September the nickel plant was turned off for nine days.

Rudy: Order to prioritize power for the copper circuit. However, the nickel plant resumed normal operations in October and production guidance remains unchanged at 17 to 20000 tons of contained nickel.

Rudi Badenhorst: At Coverage Panama, the operation remained under the phase of preservation and safe management throughout the quarter. Inspection frequency of the present plant has increased from 28 to 56 days. However, startup frequency of the equipment remains unchanged at 14 days. All the major ultra-class mobile equipment is in a maintenance cycle that adds years to the original equipment manufacturer's long-term storage recommendations and includes periodic inspections as well as scheduled startups. The costs for the TNSM program, Inc. 3, were approximately $13 million per month, and I expected to thank all our employees at Coverage Panama and their continued commitment to the operation and maintaining the mine area to the highest environmental standards.

Rudy: At Cobre, Panama the operations remained under the phase of preservation and safe management throughout the quarter.

Rudy: Inspection frequency of the process plant has increased from 28 to 56 days.

Rudy: However, startup frequency of the coupon remains unchanged at 14 days.

Rudy: All the major ultra class mobile equipment. He is in the maintenance cycle that adheres to the original equipment manufacturers long term storage to commendations Andy.

Rudy: And includes periodic inspections as well as scheduled start ups.

Rudy: The costs for the PNM program include a fee.

Rudy: With approximately $13 million per month.

Rudy: And I expect it to be in the range of $11 million to $13 million per month for the remainder of the year.

Rudy: I wish to thank all our employees at Cobre, Panama and a continued commitment to the operation and maintaining the mine area to the highest environmental standards.

Rudi Badenhorst: As Tristan noted earlier, we had a tragic accident during the quarter. The death of our colleague was profoundly felt by the team at Kinsanchi and across our company. We continued to support the family, and we are committed to applying the lessons learned from the investigations as we seek to ensure the safety of all our colleagues.

Rudy: That's just a noted earlier.

Rudy: We had a tragic accident during in the quarter to.

The death of our colleague was profoundly felt by the team at <unk> and across our company.

Rudy: We continued to support the family and we are committed to applying the lessons learned from the investigations as we seek to ensure the safety of all our colleagues.

Ryan MacWilliam: Thank you, and I will now hand a call over to Ryan to review the financials. Thank you, really. On the market side, the copper price was strong early in the quarter, supported by the weaker US dollar and lower interest rates. Prices then pulled back on concerns around Chinese growth, reaching a low of $3.91 in early August. While prices increased steadily late in the quarter, following the announcement of Chinese stimulus measures, overall Q3-eralyzed copper prices were 2% lower than Q2. Despite the slightly lower copper price, revenue and EBITDA increased by 4% and 55%, respectively. On the back of the strong operational performance that Rudy described, and the resulting higher copper sales and increased gold volumes.

Rudy: Thank you I will now hand, the call over to Brian to review the financials.

Brian: Thank you Rudy.

Speaker Change: On the market side, the copper price was strong early in the quarter.

Speaker Change: Appointed by the weaker U S dollar and lower interest rates.

Brian: Prices, then pulled back on concerns around Chinese growth, reaching a low of $3.91 in early August.

Brian: While prices increased steadily late in the quarter following the announcements of Chinese stimulus measures.

Brian: Overall, Q3 realized copper prices were 2% lower than Q2.

Despite the slightly lower copper price revenue and EBITDA increased by 4% and 55% respectively on the back of the strong operational performance at Rudy described and the resulting higher copper sales and increased gold volumes.

Brian: Okay.

Ryan MacWilliam: Q3-net earnings attributable to shareholders also improved $108 million, returning to a positive position for the first time since Cobra Panamar entered preservation and safe management.

Brian: Q3, net earnings attributable to shareholders also improved $108 million returning to a positive position for the first time since cobre, Panama into hinted preservation and safe management.

Ryan MacWilliam: On to costs. C1 costs improved by 9% to $1.57 per pound. This improvement was due to higher production across all sites, coupled with lower fuel costs from decreased fuel prices and improved burn rates. As Rudy Interested mentioned, our Xambian electricity costs have increased because of the power shortages and the resulting higher third-party imports. The cost impact of this has been mitigated by strong gold by-product credits during the quarter, a result of both strong gold production and strong gold prices, but the gold price averaging $2,400 per ounce during the quarter. Additionally, the reduction in inflation that has played out globally in recent months has resulted in some of our input costs tracking favourably compared to the assumptions used in our initial C1 cash cost guidance.

Onto costs.

Brian: He won costs improved by 9% to $1.57 per pound.

Brian: This improvement was due to higher production across all sites, coupled with lower fuel costs from decreased fuel prices and improved burn rates.

Speaker Change: As Rudi interested mentioned Zambian electricity costs have increased because of the power shortages and the resulting higher third party inputs.

Speaker Change: The cost impact of this has been mitigated by strong gold byproduct credits during the quarter. A result provides strong gold production.

Speaker Change: And strong gold prices with the gold price, averaging 2000 and $400 per ounce during the quarter.

Speaker Change: Additionally, the reduction of inflation that has played out globally. In recent months has resulted in some of our input costs tracking favorably compared to the assumptions used in our initial C. One cash cost guidance.

Ryan MacWilliam: We're therefore narrowing the top end of our cost guidance by 10 cents, with our revised folio guidance range of $1.80 to $1.95 per pound.

Speaker Change: We are therefore narrowing the top end of our cost guidance by 10 cents with our revised full year guidance range of $1 80 to $1 95 per pound.

Ryan MacWilliam: In order to prudently manage the balance sheet through the construction of S3, we've maintained the hedging approach that we described on our Q2 call. We now have roughly 43% of our copper hedged in the form of zero cost collars through to the end of 2025. Some of our hedges that we previously put in place roll off during the quarter, resulting in a realised hedge gain of $21 million. We've continued to add new collars during the quarter with average floor and cap of $4.07 and $4.78 per pound, respectively. This takes our current total hedge position to turn 45,000 tonnes of collars with an average floor and cap of $4.18 to $5.01 per pound.

Speaker Change: In order to prudently manage the balance sheet through the construction of the phase III.

Speaker Change: We've maintained the hedging approach that we described on our Q2 call.

Speaker Change: We now have roughly 43% of all copper hedged in the form of zero cost collars through to the end of 2025.

Speaker Change: Some of our hedges that we previously put in place rolled off during the quarter.

Speaker Change: <unk> had realized hedge gain of $21 million.

Speaker Change: We've continued to add new college during the quarter with average floor in cap of $4 seven and.

Speaker Change: And $4.78 per pound respectively.

Speaker Change: This takes our current total hedge position to 245000 tons of collars with an average floor cap of $4.18 to $5.01 per pound.

Speaker Change: Yeah.

Ryan MacWilliam: Next debt increased this quarter by $174 million to $5.6 billion. This was driven by capital expenditure on S3 and increased working capital levels. This increase in working capital was predominantly a result of sales made towards the end of the quarter, and cash only being received for these sales after the quarter end. The quiddity remains strong at $1.5 billion, comprising of $693 million in cash and $830 million of undrawn revolver. It was also pleasing to successfully complete the amendments and extension of the Trident Facility on October 15th, with repayments now commencing in 2026 after 2028. This frees up $425 million in the quiddity in the coming year while we focus on delivering S3.

Net cash increased this quarter by $154 million to $5 6 billion.

Speaker Change: This was driven by capital expenditure on a three and increased working capital levels.

Speaker Change: This increase in working capital was predominantly a result of sales made towards the end of the quarter and cash only being received for these sales after the quarter end.

Speaker Change: Liquidity remains strong at $1.5 billion.

Speaker Change: Pricing of $693 million in cash and $830 million of Undrawn revolver.

Speaker Change: It was also pleasing to successfully complete the amendment and extension of the tried and facility on October 15th with repayments now commencing in 2026 up 2028.

Speaker Change: This frees up $425 million in liquidity in the coming year, while we focus on delivering S. III.

Ryan MacWilliam: We also continue to review the merits of a sale of CLC and a minority investment into our ambient business. This is consistent with our broader strategy. We are open to partnerships in Zambia and across the group if it creates strategic value for our business and host countries.

Speaker Change: We also kony to continue to review the merits of a sale of CLC and minority investments in child Zambian business.

Speaker Change: This is consistent with our broader strategy, we were open to partnerships in Zambia and across the group if the create strategic value for our business and host countries.

Ryan MacWilliam: As these discussions are currently underway, we will not be making further comments in this regard.

Speaker Change: As these discussions are currently underway will not be making further comments in this regard.

Ryan MacWilliam: That concludes the finance section.

Speaker Change: That concludes the finance section.

Tristan Pascal: I now hand the call back to Tristan. Thank you, Ryan.

Speaker Change: I'll now hand, the call back to Justin.

Justin: Thank you Ron.

Tristan Pascal: Before handing the call over for Q&A, I'm excited to share with you the progress that has been made at the Consangi S3 expansion since our last update. During the quarter, the team at site completed the assembly of the Stagg and ball mills, and installation of the gealous mill drives have commenced. System configuration of the plant control system has been completed for the primary circuit, and work is now focused on ancillary systems and service. In our presentation deck, you will see other areas of progress, including installation of the flotation cells, direction of the pebble conveyors, and the primary crusher, all of which remains on schedule.

Before handing handing the call over for Q&A I'm excited to share with you. The progress that has been made at the consent. She has three expansion since our last update.

Justin: During the quarter the attainment saw it completed the assembly of the Sag and ball mills and installation of the Gearless mill drives have commenced.

Justin: Just didn't configuration of the plant control system has been completed for the primary circuit and work is now focused on ancillary systems and services.

Justin: In their presentation deck, you will see other areas of progress, including installation of the flotation cells.

Justin: Erection of the pebble conveyors and the primary crusher all of which remains on schedule.

Tristan Pascal: The focus on site has now shifted to bolt piping and electrical installation works. Commissioning activities have started in the 33 kV distribution substation, which is scheduled to be energized in the fourth quarter. The plant simulator is now on site, and operator training is expected to start imminently. We expect that all required equipment will be on site by the end of November. We have been focused on supplementing manning levels, bringing in the additional manpower that will be needed for the installation of equipment over the coming months as we commission S3. Our operational readiness team is in place and already working with our project teams to facilitate a smooth ramp up on completion of the construction phase.

Justin: The focus on thought has now shifted to bolt piping and electrical installation works commissioning.

Commissioning activities have started in the city three kv distribution substation, which is scheduled to be energized in the fourth quarter.

Justin: The plant simulators, now and thoughts and authorized a training is expected to start imminently.

Justin: Yeah.

Justin: We expect that all required equipment will be on site by the end of November we have been focused on supplementing manning levels, bringing in the additional manpower that will be needed for the installation of equipment over the coming months as we commission S. III.

Justin: Our operational readiness team is in place at consent sheets and already working with our project team to facilitate a smooth ramp up on completion of the construction phase.

Tristan Pascal: There is a lot of activity on site, and we are on track for first production in the second half of 2025. Thank you for your attention.

Justin: There is a lot of activity on sites and we are on track for first production in the second half of 2020 five.

Justin: Yeah.

Speaker Change: Thank you for your attention. This brings our prepared remarks and operator, we can open the call for Q&A.

Tristan Pascal: This brings out prepared remarks to an end.

Operator: Operator, we can open the call for Q&A. Certainly. We will now begin the analyst question and answer session. Analysts are permitted to ask one question and one follow-up, and are welcome to rejoin the queue if they have more. To join the question queue, you may press star, then one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speaker phone, please pick up your handset before pressing any keys. To withdraw your question, press star, then two.

Speaker Change: Certainly well.

Speaker Change: Now begin the analyst question answer session analysts they are permitted to ask one question and one follow up and are welcome to rejoin the queue. If they have more.

Speaker Change: To join the question queue. You May Press Star then one on your telephone keypad, you'll hear a tone acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any key.

Speaker Change: So we're trying a question press Star then two.

Horace Walk It Out: Our first question is from artist Walk It Out with Gosha Bank. Please go ahead. Hi, good morning.

Speaker Change: Our first question is from our work it out with Scotiabank. Please go ahead.

Speaker Change: Hi, good morning, it sounds promising.

Tristan Pascal: Sounds promising that could be a pathway to a discussion, I guess in the new year with the new Panamanian government on restarting Cobra Panema. I'm just curious, does the environmental audit have to be completed to begin that process, and can you give us an update on when you think that's going to happen? And then also wondering about what the status is of the existing concentrate sitting at Cobra Panema.

Speaker Change: Could be up.

Speaker Change: Way too discussion I guess in the new year with new Panamanian government are restarting Cobra, Panama I'm. Just curious does the do you think the environmental audit has to be completed to begin that process and can you give us an update on when you think that's going to happen and then also wondering about what the status there.

Speaker Change: Is that the existing concentrate sitting at cobre Panama.

Speaker Change: Okay.

Tristan Pascal: Hi, Horace. Thanks for the questions. So, in terms of the environmental audit, yes, the government's comments, the president's comments in particular, have noted that they would like to see that audit happen. We expect in the timetable that they've been providing was by the end of this year, although at this stage we haven't seen that environmental auditor appointed as yet. Currently, our understanding is that the terms of reference for that audit are being prepared, and that they would then appoint the auditor. Our hope is that can still be completed on time and that the audit would then be in place for the timing that we talked about.

Speaker Change: Hi, Chris Thanks for the questions.

Speaker Change: So in terms of the environmental audits.

Speaker Change: Yes, the governments' comments the President's comments in particular have noted that they would like to see that would've happened. We expect in the timetable that they've been providing was by the end of this year. Although at this stage, we haven't seen that environment to order to.

Speaker Change: <unk> appointed as yet currently our understanding is that the terms of reference for that audits are being prepared.

Speaker Change: And that they would then appoint the order to our hope is that it can still be completed on time and and that the audit would then be in place too for the timing that we talked about in the prison hasn't been made clear in terms of a restock early next year or at least dealing with the issue really.

Tristan Pascal: The president has been made clear in terms of a restart early next year or at least dealing with the issue early next year.

Speaker Change: Next year.

Tristan Pascal: In terms of your question on the concentrate, that material is sitting at the port: 121,000 tons. It's in reasonable condition in terms of copper content, but we remain concerned about degradation of the sulfur in that material, and that does continue to pose some hazard environmentally. It is in the best interest of the environment and everyone there to get that material shipped off. Our understanding that it is the government's intent to do that through approval of the Preservation Safe Management Plan would allow that material to move, and we think that's important to happen as soon as practically can be.

Speaker Change: In terms of your question on the concentrate that materials, you're sitting at the port the hundred and 21000 tonnes. A it's unreasonable condition in terms of copper content, but we remain concerned about degradation of the sulfur in isn't that material.

Speaker Change: And that does continue to pose some hesitant environmentally easing.

Speaker Change: It is in the best interest of the environment and everyone needs to get that material shipped off our understanding that you used the government's intent to do that through approval. The preservation safe management plan would allow that material to move and we think that's important to happen as soon as practically can be achieved.

Speaker Change: Okay.

Horace Walk It Out: Thanks, Tristan.

Thanks Kristen.

Ralph Profiti: The next question is from Ralph Profiti with 8th Capitol. Please go ahead. Thanks, operator. Good morning, Tristan. Just wondering, and maybe Rudi can chime in here. As the wet weather comes in Sentinel in Q4, just wondering what the conditions of the benches are in sort of utilizing some of the terrorist mining initiatives. Sort of what state are we in there, and just wondering if that's kind of driving the bottom end of the range as we think about conservatism in Q4. Thanks, Ralph.

Speaker Change: The next question is from Ralph <unk> with eight capital. Please go ahead.

Speaker Change: Yeah.

Speaker Change: Thanks, operator.

Speaker Change: Good morning, Tristan just.

Ralph: I'm wondering and maybe Rudy can chime in here as the wet weather comes in at Sentinel in Q4, just wondering what the conditions of the benches are in sort of utilizing some of the terrorists mining initiatives sort of what what state are we in there and just wondering if that's kind of driving the bottom end of the range as we think about conservative.

Into Q4.

Speaker Change: Thanks, Ralph Rudi do you want to take that question.

Rudi Badenhorst: Rudi, do you want to take that question? Yeah, no problem. Hi, Ralph. Thanks for the question. Certainly, well, let's start off with the wet season hasn't started in Zambia yet. At the end of this week, we're going through the 60th birthday anniversary of Zambia with independence, and normally that's when the rain starts. But I can assure you, we're well prepared for the wet season. A considerable amount of capital has been spent on the watering activity and setting up the, but into such a way that allows for the handling of water in the event that we have an exceptional wet season.

Yeah no problem.

Speaker Change: Thanks for the question.

Speaker Change:

Speaker Change: Certainly.

Rudi: Well, let's start off with the weight season hasn't started in Zambia.

Rudi: And then at the end of this week, we are going through the 60th.

Rudi: Birthday anniversary of Zambia, with independents and normally that's when the lines we.

Rudi: But I can assure you we will prepaid.

Rudi: For the wait season, the considerable amount of capital that's being spent on the ordering activity and setting up the <unk> but into <unk>.

Rudi: Such a way that allows for the.

Rudi: Handling of water in the event that we have the exceptional wait season.

Rudi Badenhorst: We're quite confident that the measures that we've taken are adequate enough, and then send that signal. Sure, yes, surely we are always taking the wet season into consideration when in our plans and our budget, but also, you know, we are taking necessary maintenance measures as well during the quarter that impacts that. Gotcha, helpful, yeah.

Rudi: We're quite confident that the measures that we've taken oh adequate enough and then mining is set up to deal with it.

Rudi: As far as the the the backend of production is concerned that St. Joe sure. Yes, really we are always taking the wait season into consideration when in our plans and our budgets.

Rudi: But also you know we.

Rudi: King missed to see maintenance measures as well during the quarter that impacts that.

Speaker Change: Gotcha helpful. Yeah. Ryan can you can you help us out with capital spending versus budget at three sort of the remainder of 'twenty four and maybe into 'twenty five Tristan as comments about our ramp up in labor activities in manpower, just wondering whether or not we're seeing inflationary pressures there.

Ryan MacWilliam: Ryan, can you help us out with capital spending versus budget at S3, sort of the remainder of 24 and maybe into 25, you know, Tristan's comments about ramp up and labor activities and manpower just wanting to whether or not we're seeing inflationary pressures there. Sure, Ralph. So we've spent $700 million on S3 to date. So that means we've got $550 million to go. As Tristan noted, we're on budget of the $550 million, to go with $200 million of that is already committed. That really relieves a balance, which is still to be priced, but in most of those contracts, we have visibility and what we expect the pricing to be.

Ryan: Sure Rob sorry, we've spent $700 million in S. Three to date. So that means we've got $550 million to go as Tricia noted we're on budget of $550 million to go with $200 million of that is already committed.

Speaker Change: We believe our balanced which is still to be priced but in most of those contracts. We have visibility on what we expect the pricing to be so I think that all of that gives us the confidence interest in his remarks about the fact that the project remains on track and on budget within that $1 billion to $5 billion.

Ryan MacWilliam: So I think that all of that gives us the confidence and confidence remarks about the fact that the project remains on track and on budget within that $1.25 billion.

Ian Russell: Next question is from Ian Russell with Barclays. Please go ahead. Thanks, hi, Tim. Just a question on the S3 expansion. Tristan, you mentioned in your remarks. First production is expected in the second half of 2025. If I compare that to some of the previous releases, the wording was mid 2025.

Speaker Change: The next question is from Ian Rossouw with Barclays. Please go ahead.

Ian Rossouw: Thanks, Hi, Tim just a question on the S. Three expansion.

Ian Rossouw: And you mentioned in your remarks first production is expected in the second half of 2025.

Ian Rossouw: Compare that to some of the previous releases. The wording was mid 2025% just wanted to get some clarification. If there has been any delay to it.

Ian Russell: Just wanted to get some clarification if there has been any delay to the target for first production. And then they can be sticking to Consanshi just on the gold production. In the start of the year, as part of your three-year production outlook, you cut gold production guidance. It's Consanshi by 30% for this year and 25% next year. And then the increase today is essentially sort of taking that production that Consanshi back to where the guidance was last year.

Ian Rossouw: All good for first production.

Ian Rossouw: And then secondly, sticking to consign, she just on the gold production.

Ian Rossouw: And the start of the year as part of your three year production object you cut the gold production guidance at Constancia by 30% for this year and 25% next year.

Ian Rossouw: And then the increase today is essentially instead of taking that production at Constancia back to where the guidance was last year can you provide a bit of details what's what's resulted in these changes.

Ian Russell: Can you provide a bit of details what's resulted in these changes? And whether it's mind-blown, I guess you mentioned in the release, it's gray-related, but just how should we think about that for next year's figure? Thank you. Thanks, Ian.

Ian Rossouw: Whether its mine plan I guess you mentioned in the release, it's grade related but just how should we think about that for next year.

Ian Rossouw: Thank you.

Speaker Change: Thanks, Ian I'll, let Rudy take the second part of that question on gold production and how that's coming about through the swapping of the meals from so far to mixed but in terms of your first question on its three timing I think you know response to that is we we we have the opportunity now with greater clarity.

Tristan Pascal: I'll let Rudi take the second part of that question on goal production and how that's come about through the swapping of the mills from self-ide to mixed. But in terms of your first question on S3 timing, I think, Ian, our response to that is we have the opportunity now, with greater clarity to the end of the project, to be more specific. So I wouldn't call it a change in outlook. It's more that we're being more specific on how we see the project land. And that is we expect completion by mid-year. And then we're really focused now on operationalising and ramping up through the second half of the year.

Speaker Change: To the end of the project to be more specific so I wouldn't call. It a change in outlook, it's more that we're being more specific on how we see the project land.

Speaker Change: And that is we expect completion by midyear.

Speaker Change: And then we really focus now on operation lodging and ramping up through the second half of the year. So Oh, no its really speak to that.

Rudi Badenhorst: So our notes really speak to that how we see first or start and first production come through and ramp up through the second half of the year. But broadly speaking, we're comfortable with the project delivering on the timetable we've been outlining.

Speaker Change: How we see first all start and first production come through and ramp up through the second half to be at but broadly speaking we are comfortable with the project are delivering on the timetable we.

Speaker Change: Been at Lonnie.

Rudi Badenhorst: Rudi, would you like to just speak there on the goal and the situation for the end of the year? Yeah, I'm good to hear from you again. As you would be aware, Ian, it concerns you that the goal grade, the reasonably tracks up a grade and where we currently mining and the upper benches are the main 15 cutbacks. You're seeing slightly higher mixed or grades, which also the necessitated or gave us the opportunity to swap the mulling circuits. It's meant that we have seen a higher tonnage going through the plant of mixed grade, and obviously the goal accompanies that.

Speaker Change: Rudy would you like to just sneak there on on the gold on the Sichuan.

Speaker Change: Oh isn't good to hear from you again.

Speaker Change:

Speaker Change: Are you you would be a way that consensus.

Speaker Change: The gold grade reasonably correct, so copper grade.

Speaker Change: And where we currently mining in the upper benches of the main 15 cutback, we are seeing slightly higher is.

Speaker Change: All right.

Speaker Change: Which also then necessitate that.

<unk> gave us the opportunity to swap the milling circuits, which meant that we have seen a higher.

Speaker Change: Tonnage going through the plant of mixed right.

And obviously the golden companies that.

Rudi Badenhorst: And at the same time, during the third quarter, we installed some additional melts and concentrates that can sent you and brought others online, which also resulted in the additional goal.

Speaker Change: And at the same time getting the the third quarter, we installed some additional Nelson concentrates is concerned she brought others.

Speaker Change: Mine, which also resulted in the additional additional Gulf as far as 2025 is concerned.

Rudi Badenhorst: As far as 2025 is concerned, you know, we'll look at that when we provide our guidance in the early of the year.

Speaker Change: Look at that when we provide our guidance in early in the new year.

Speaker Change: Okay.

Miles Elsock: The next question is from Miles Elsock. Would you be a please go ahead. Yeah, great. Thanks. Just going back to Cobra Panamar. Could you just give us a quick update in terms of speed to remobilize? If you were to get approval tomorrow, what would be the likely sort of timing to be able to start ramping up? And, you know, would be helpful to get a sense as to why you think the government has not approved the preservation and safe management plan. The kind of sense last quarter was that it was imminent, and three months later, it still sounds like it's imminent.

Speaker Change: Next question is from Myles Allsop UBS.

Speaker Change: Ted.

Yeah, great. Thanks, just on going back to type of Panama could you just give us a quick update in terms of speed to re mobilize all yeah. If you've watched approval tomorrow, what would be the likely sort of timing to be able to start ramping up.

Speaker Change: And yes, it would be helpful to get a sense as to why you think the government has not approved the preservation and safe management planning.

Speaker Change: Kind of sense last quarter was that it was evident in three months later and it's still it sounds like it's imminent.

Miles Elsock: You know, do you have a better understanding as to why it's dragging, and will we be having the same conversation in three months' time? That's the first question.

Speaker Change: A better understanding as to why.

Speaker Change: It's dragging will we be having the same conversation.

Speaker Change: In three months time.

Speaker Change: That's the first question.

Tristan Pascal: Thanks, Miles. Yeah, so looking in terms of ramping Cobra Panamar back up, even when that decision comes through, yeah, I think what we would, how we would respond to that is certainly at this time, it's really about bringing people on and bringing suppliers back online. There's a lot of Panamanian suppliers that are sitting idle and waiting. There's a lot of employment in Panamar that's sitting idle and waiting. There were some 4,500 redundancies made at the site. We currently speak to around 3,000 of those people every month, and most of those are ready to come back to work immediately.

Speaker Change: Thanks, Paul Yeah. So look in terms of ramping cobre, Panama My backup if and when that decision comes through yeah, I think what we would.

Speaker Change: How we would respond to that is certainly at this time, it's really about bringing people on and bringing our supply is back online and there's a lot of Panamanian suppliers that are sitting idle and whiting, there's a lot of employments in Panama that sitting idle and waiting a week.

Speaker Change: There was some.

Speaker Change: Four and a half thousand redundancies might at the site. We currently speak to around 3000 of those people every month and.

Speaker Change: And most of those are ready to come back to work immediately but I think as time drags on that gets harder to get people back.

Tristan Pascal: But I think, as time drags on, that gets harder to get people back. It's just a natural attrition there. And so I think if it does delay too much later into the second half of next year, that gets more challenging. In terms of how we think the overall ramp up will run, we would be able to start up one train or a second train fairly in a fairly straightforward manner. But then it's going to take time to build out capacity. And so it probably would take in the order of six months to build out to the full level.

Speaker Change: Is it just didn't.

Speaker Change: Natural attrition there and so I think if it does delay.

Speaker Change: Too much later into the second half of next year that gets more challenging in terms of how we think the all go well ramp up will run we would be able to start up one triangle second try in a fairly in a fairly straightforward manner.

Manner, but then it's going to take time to build out capacity and so it probably would take you know in the order of six months to build out so the sort of full level in terms of your second part of your question on the preservation and Safe management plan.

Tristan Pascal: In terms of the second part of your question on the preservation and safe management plan, yeah, certainly, you know, we have felt in country and the conversation seems to be that it's imminent. Comments from various ministers who are involved in that decision-making process have been public in saying that it's imminent, and we continue to receive that guidance on the ground there that it is imminent. Certainly, what we think is dragging on that is that the government has made clear the focus on the social security reform at the current time, and that is taking a lot of attention.

Speaker Change: Yes, certainly.

Speaker Change: We we had felt in country and the conversation seems to be that it's imminent comments from various ministers, who are involved in that decision, making process have been public in saying that see minutes and we continued to receive that guidance on the ground. There are that are dizzy minutes Sydney.

Speaker Change: <unk>.

Speaker Change: What we think is dragging on that is that the government has made clear the prisoners might clear they focused on the social security reform at the current time and that is taking a lot of attention are nonetheless.

Tristan Pascal: Nonetheless, as I said, the public comments have been around imminent approval because that was important in terms of managing the environmental topic at Covert Panama, and that's in everybody's interest. That sits well outside a commercial interest or the mind's interest or the government's interest. That's in the interest of everyone that those environmental security, the acid integrity of the site is maintained, and so it's therefore our view that it should be approved without any further delay.

Speaker Change: As I said the public comments that have been around imminent approval because that was important in terms of managing the environment to a topic at cobre, Panama and that's in everybody's interests that sits well outside of commercial interest all the mine's interest where the government's interest that's in the interest of everyone. That's always environmental.

Speaker Change: The environmental security the asset integrity of the Saatchi is is maintained.

And so it's there for al Al view that it should be approved without any further delay.

Lawson Winder: The next question is from Lawson Winder with Bank of America Security. Please go ahead. Thanks very much, Operator. The more interesting, Rudy and Ryan, excellent Q3 results in Zambian. Thank you for the update.

Speaker Change: The next question is from Lawson Winder with Bank of America Securities. Please go ahead.

Thanks, very much operator, Martin interest in Radian, Ryan excellent Q3 results in Zambia, and thank you for the update.

Lawson Winder: I think I could ask about the Zambian acid sale process in light of the recent news of another potential offer for a minority interest. Would you be able to characterize the nature of that sale process? For example, are there still new bids coming in, or are the processes closed? Are you in a final phase, perhaps, with a short list of bidders? And, you know, can you give an idea of maybe how many bidders might be involved? And then, ultimately, what will the criteria be if FFAM makes a, or sorry, First Quantum makes a decision to accept an offer?

Lawson Winder: If I could ask about the Zambian asset sale process just in light of the recent news.

Lawson Winder: Another potential offer for a minority interest would you be able to characterize the nature of that sale process, where for example.

Lawson Winder: Or are there still new bids coming in or is the process close.

Lawson Winder: Are you in a final phase, perhaps with a shortlist of bidders and even could you give us an idea of maybe how many bidders might be involved and then ultimately what will the criteria would be.

Lawson Winder: It makes it a or sorry first quantum makes a decision to accept that offer.

Tristan Pascal: Sure, Lawson. Thanks, Lawson. It was pretty public. Sorry. Sure. Lawson, we've been pretty clonsistent that across the business we're more open to partnerships, and that includes in Zambia. But it's only if it's in the interest of our Zambian business, the Zambian government, and all the stakeholders involved. So, we remain open-minded in respect of potential partnerships. We are engaged in discussions in that respect, but we wouldn't provide any comments beyond that, given there are live discussions.

Speaker Change: Sure Lawson, Thanks, Louis pretty ugly Brian.

Lawson Winder: Yeah.

Lawson Winder: Sure sure.

Speaker Change: Listen we've been pretty consistent that across the business, we're more open to partnerships and that includes in Zambia.

Speaker Change: But it's only if it's in the interests of our Zambian business, the Zambian government and all the stakeholders involved.

Speaker Change: So we remain open minded in respect of potential partnerships. We are engaged in discussions in that respect that we wouldnt provide any comments beyond that given their life discussions.

Speaker Change:

Speaker Change: Okay fair enough.

Speaker Change: And then where am I, followed up with these would actually be on a sense at all so it was great to see that the improved fragmentation in.

Rudi Badenhorst: Okay. I was great to see that the improved fragmentation in the pay was leading to some improved crushing and milling rates.

Speaker Change: In the in the pay it was leading to some improved crushing and milling rate.

Rudi Badenhorst: What are some of the next steps to ultimately get to that 62 million ton per year run rate? And when will I just think that that will ultimately be achieved?

Speaker Change: What are kind of the next steps to ultimately get to that 62 million ton per year run rate and in winter willfully just thank you Irwin.

Ultimately be achieved.

Rudi Badenhorst: Hi, Lawson. Really effectively achieved that run rate during the months of August and September, with 5 million tons per annum being throughput at Sentinel. Sentinel certainly now in a position.

Speaker Change: Hi, Allison.

Speaker Change: It really effectively achieve that run rate.

Speaker Change: During the months of August and September with 5 million tons per annum being throughput.

Speaker Change: Sentinel.

Speaker Change: Sentinel certainly now in a position and you don't remember.

Rudi Badenhorst: And you'll remember during the last few calls we said that we're setting up the pit to be productive. How it means that we will continue to mine what's in front of the shovels. We won't be chasing grade, and you know it's all about sitting up the terraces and getting those shovels in a position where they can mine effectively and the trucks and all effectively. That's what we think, and I'll ease that now, and we're quite confident that over the preceding year, you'll see those rights of five million plus on the monthly basis happening a lot frequently.

During the last few calls we said that we're sitting up but to.

Speaker Change: To be productive.

Speaker Change: It means that we will continue to mind, what's in front of the shovels, we won't be chasing grade.

Speaker Change: And it's all about.

Speaker Change: Setting up the terraces on getting those shovels in a position where they can mine effectively in that direction all effectively that's waste internal ease up now.

Speaker Change: And we're quite confident that over the preceding year.

We will see those right, so 5 million plus on a monthly basis, putting lot frequently.

Speaker Change: Okay.

Bryce Adams: The next question is from Bryce Adams with CIBC. Please go ahead. Good morning or good afternoon, everyone. Thanks for the update, and thanks, Tristan, for the comments around Panama. My question is to follow up on the earlier Panama questions. If the environmental order is not yet started and the order isn't appointed, so this means the discussions with the government are more likely to be second half of next year rather than earlier in the year. Understanding an audit might take up to six months to complete. The timeline here seems like those government conversations could take a little longer.

Speaker Change: The next question is from Bryce Adams with CIBC. Please go ahead.

Bryce Adams: Good morning, or good afternoon, everyone. Thanks for the update and thanks Kristen for the comments around Panama. My question is a follow up on the earlier Panama questions.

Bryce Adams: If the environmental order has not yet started and the order is an appointed does this mean the discussions with the government are more likely to be second half of next year rather than earlier in the year.

Bryce Adams: Understanding and what it might take up to six months to complete the timeline here. It seems like those government conversations could take a little longer just wondering if I have it wrong, but it appears like that or that might conclude by mid next year.

Bryce Adams: Just wondering if I have it wrong, but it appears like that audit might conclude by mid next year. That's all I had. Thanks a lot.

Speaker Change: That's all I had thanks a lot.

Tristan Pascal: Bryce, thanks for the question. I think we need to see what the terms of reference are for the audit and how that would work. I mean, certainly Cover Panama has been the subject of intense audit all through last year and this year. The audit result that we had as an operating asset from August to October was 100% compliance on all the environmental and biodiversity requirements of the 300 and 71 commitments under the SIA. It was on the elements of the health and safety where some improvements were warranted and were underway. Subsequent to the Supreme Court decision and why we were closed, we brought in independent orders to review, and the government itself brought in auditors when the mine was in suspension.

Speaker Change: Yeah Ross Thanks.

Speaker Change: Thanks for the question I think we need to see what the terms of reference off with the audits and how that would work I mean, certainly cobre, Panama has been the subject of intense audit all through last year and this year. The audit result that we had is not bright our operating asset from August to October was 100% compliance on.

Speaker Change: All the environmental board diversity requirements, or the 300, and Sydney won't commitments under the <unk> and it was on the elements of the health and safety waste improvements warranted. When we're underway subsequent to the Supreme Court decision and while we were closed we brought an independent orders to review and the government itself brought in order to.

Speaker Change: As when the demand was in suspension and again the al the independent audit was demonstrated.

Tristan Pascal: And again, the independent audit demonstrated a high level of compliance, and the government audit itself continued to demonstrate 100% compliance on the environmental and biodiversity requirements under the SIA. So we feel good. We feel confident about the position of the mine and that any independent audit looking at it would feel the same way. They'll probably point out areas, and we're quite happy that those areas are pointed out and that we get everything to the highest possible standards. But we'll just need to see what those terms of reference are in order to understand the timetable that you refer to.

Demonstrated a high level of compliance and the government ordered itself continues to demonstrate 100% compliance on the environmental and board diversity requirements under the year, sorry, I. So we feel good we feel confident about the position of the mine and that any independent audit looking at it would feel the same way that you know probably point out Eric.

Is and we were quite happy that those areas have pointed out and that we get everything to the highest possible standards, but we'll just need to see what those terms of reference off in order to understand the timetable that you referred to beyond that I can only point to the President's comments and his most recent comments in New York to say that it would be.

Tristan Pascal: Beyond that, I can only point to the President's comment and his most recent comments in New York to say that they would be looking to deal with the issue early in 2025.

Speaker Change: Looking to deal with issues early in 2025.

Operator: The next question is from Pardon Me.

Speaker Change: The next question is one pardon me.

Gabrielle Simoles: I have to manually update the next question is from Gabrielle Simoles with Goldman Sachs. Please go ahead. Hi, thanks for taking my question. I didn't end up being on the number of power situation, but you mentioned you expect minimal reserves in this whole core. But it'd be interesting to see your view on this sitting a bit further out, right? So what would you see in terms of disruption? I can't mention the answer that's in the concentrator. How does it impact that could have? And if there are any measures in terms of the country in terms of power generation or in terms of infrastructure to improve the situation.

Speaker Change: Okay.

Speaker Change: Next question is from Gabriel and also with Goldman Sachs. Please go ahead.

Speaker Change: Hi, Thanks for taking my question.

Speaker Change: I just didn't know if I have to be on there.

Speaker Change: Situations like you'd mentioned you'd say minimal reserves.

Speaker Change: But it's interesting to me.

Speaker Change: Looking a bit further out right. So what can you see in terms of disruption at convention lumps ethics concentrated on how big of an impact that could have and if there are any major picking back up.

Speaker Change: It seems like a great stream origins of infrastructure to improve the situation.

Gabrielle Simoles: Can you please already understand the drought or in terms of infrastructure growth in the coming semester? Thank you.

Speaker Change: Alrighty and extended drought or cause our future dolphin.

Speaker Change: Yes.

Speaker Change: Yeah.

Tristan Pascal: Thanks, Gabrielle. Yeah, so certainly the situation with El Nino had an impact on the country, not just on power but on food security, and First Quantum has been supporting Zambia. We have trapped some 4,000 tonnes of maize into the country to support the government's efforts on food security. On the power situation, we've been putting in place the alternative sourcing of power, and that is from imported sources. We have three providers of that imported power, mostly from Mozambique and from Namibia, to augment the in-country supplies. And so, at this stage, we feel good about this season, and as Rudi says, the rains are expected imminently for the wet season.

Speaker Change: Thanks, Gabriel Yeah. So.

Speaker Change: Certainly the situation with El Nino I had an impact on the country not just on power, but on food security and first quantum has been supporting Zambia, We we have trucked some 4000 tons of mice into the country to support the government's if it's on food security on the power situation.

Speaker Change: We'd be putting in place the alternative sourcing of power.

Speaker Change: And that is from imported sources and we have three providers of that imported power, mostly from Mozambique and from Namibia to augment the in country supplies and so at this stage we feel good about.

Speaker Change: This.

This season and as Rudy says the rains are expected imminently.

Speaker Change: For the wet season. It does look like in terms of your question looking ahead that the forecast all the the El Nino is already flipped into la Nino, Although a model of la Nina than than probably was earlier expected.

Tristan Pascal: It does look like, in terms of your question looking ahead, that the forecasts are the El Niño is already flipped into La Niña, although a milder La Niña than probably was earlier expected mid-year, and the current outlook is the La Niña is a mild La Niña, and that means rainfall, a more normal rainfall. However, we do continue to prepare for both scenarios. That is a heavy La Niña, lots of rain, and as Rudi said, we've done the work on preparing for dewatering in the mines, be able to cope with that heavy situation. But also the other scenario, which is lighter rain, and that would mean that mining conditions are good, but that we might see prolonged disruption to power.

Speaker Change: Media and in the current outlook with a lot of aneurysm malt nonunion that means rightful at more normal rainfall. However, we do continue to prepare for both scenario that has a heavy laudanine yeah lots of rain and as Rudy said, we've done the work on preparing for the watering AR in the mines to be able to cope with that.

Speaker Change: Our heavy situation.

Speaker Change: But also the other scenario, which is lots of rain.

Speaker Change: And that would mean that the mining conditions are good but that we might see you know a prolonged disruption to power. So the contracts that we place to external parties provide for that optionality.

Tristan Pascal: So the contracts that we've placed to external parties provide for that optionality; they provide for the ability to continue those imports, and we feel comfortable that the level of import would allow us to start S3 without substantial impact on our production expectations. Beyond that, we continue to work with the Government Utilities Esco in supporting infrastructure in the country. We have projects online with them to support the stability of the grid in static valve compensation over the next two years, and we have projects with them to support increased renewable energy in the country to some 480 megawatts of power to come in from wind and solar sources. And beyond that, to support them in purchasing power directly.

Speaker Change: They provide for the ability to continue those imports and we feel comfortable that the level of import would allow us to stop as three without substantial impact on our production expectations.

Speaker Change: Expectations are beyond that we continue to work with the government utilities, ESCO and supporting infrastructure in the country. We have projects are online with them to support the stability of the grid instead he felt compensation over the next two years and we have projects with them to support increased renewable energy in the country to some.

Speaker Change: 490 megawatts of power to come in from wind and solar sources and beyond that to support their purchasing power directly Cisco from surrounding countries, including some 250 megawatts from South Africa, that's coming through.

Tristan Pascal: As they go from surrounding countries, including some 250 megawatts from South Africa, that's coming through in the next month or so. I hope that covers the question, Gabriel, but in terms of outlook, we believe that we built in the flexibility and optionality that we can cover any potential shortfall in power. Thank you very much.

Speaker Change: In the next month or so.

Speaker Change: I hope that covers the question Gabriel but you know in terms of outlook. We believe that we've built in the flexibility and optionality that we can cover any potential shortfall in power.

Speaker Change: You bet. Thank you.

Tristan Pascal: Thank you.

Ryan MacWilliam: If I could just add another question on your head, you started to mention that are on 43% of whom I'm thinking of expected production. 80% of the two renews, so it's about 25% to 25%. I just wanted to understand how you're thinking about this strategy going forward. I want 50% of production heads to earn them on your cost, as well as moving forward, or it should be anything you should add to that policy.

Speaker Change: I had another question on your hedging strategy you mentioned.

Speaker Change: They are on 40 gig.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: Turning to slide 10.

Speaker Change: I just wanted to understand.

Speaker Change: How are you thinking.

Speaker Change: Thinking about this.

Speaker Change: For instance.

Speaker Change: Production hedged and you might be comfortable with moving forward.

Speaker Change: Any changes to that policy.

Ryan MacWilliam: Thank you.

Ryan MacWilliam: Ryan, would you take a follow-up question, please? So I'm hedging strategy broadly at the moment we're targeting having around 40 to 50 percent of our production hedged through zero cost colours up to the end of 2025. And as hedges roll off, so you've seen us replace them with new hedges, as we did in Q3. And as the stay between 40 and 50 percent hedged through to the end of 2025.

Speaker Change: Ron would you chalk full.

Speaker Change: Question. Please.

Speaker Change: So on hedging strategy broadly at the moment, we're targeting having around 40% to 50% of our production hedged through zero cost color is up to the end of 2025 and as hedges roll off so you've seen us replace them with new hedges as we did in Q3 as we come into the backend of this year and into early next year, we'll decide whether or not to extend that into 2000.

Speaker Change: <unk> 26, and that decision will be driven by copper price comes to now how we're getting on Zambia and a variety of other factors, but for now the plan is to stay between 40 and 50% hedged through to the end of 2025.

Dalton Baretto: The next question is from Dalton Baretto with counter-cordinuity. Please go ahead. Thank you. I'll have interest in that team. I'm thinking past S3 in your world pipeline to talk at talk. Under this new Argentine, we would be. I understand this in pretty specific timelines in terms of getting the project approved by the REDI and then some specific timelines around capital spending. And many of you just update us in terms of how you're thinking about talk at Talk as it relates to the REDI region. Thank you. Hi, Dalton. Yeah, thanks for the question. And yeah, it's pertinent to speak about talk at talk.

Speaker Change: The next question is from Dalton Barreto with Canaccord Genuity. Please go ahead.

Speaker Change: Thank you I'll high interest in that team.

Speaker Change: I'm thinking past S. Three and your growth pipeline to talk the talk.

Speaker Change: Under this new Argentine Weegee.

Speaker Change: He would be I understand there's some pretty specific timelines in terms of getting the project.

Speaker Change: And then some.

Speaker Change: Specific timelines around capital spending.

Speaker Change: You can just update us in terms of how you're thinking about a topic as it relates to the weekend. Thank you.

Speaker Change: Right.

Speaker Change: Hi, Dalton yeah. Thanks for the question and yeah, it's putting them to speak about our tech attack. We saw a large delegation from Argentina at L. M. A week and I think certainly that reflected a lot of confidence that the country is developing in terms of.

Tristan Pascal: We saw a large delegation from Argentina at LME Week. And I think certainly that reflected a lot of confidence that the country is developing in terms of the investment promotion legislation that was passed as part of the Omnibus legislation. And we've seen REDI. And certainly for us, it provides an important step forward for TACA TACA. That project, we continue to like the project, potentially deliver perhaps 250,000 tons of copper a year for the first decade of an overall life that's 30 years plus.

Speaker Change: The investment promotion legislation that was passed as part of the a part of the omnibus legislation and we've seen <unk> and certainly for US. It provides an important step forward off with tech attack.

Speaker Change: That project, we continue to lock the project potentially deliver you know, perhaps 250000 tonnes of copper a year for the first decade, Oh for Novo locked that cities plus we noted a sanction decision stage. It yet we are the timelines of the rigi.

Tristan Pascal: We're not a distinction decision stage yet. We, the timelines of the REDI, that an application is required within the next two years. And there is a possibility that it can be extended by one year, but at the moment the application window is around, is two years. In that time, we would also need to see the environmental permit for Taca Taca come through and the water permits. And in that timetable, we would also need to be working on the financing pathway for the project. So we see those three as parallel work streams and, you know, that need to develop alongside each other in the timetable that's provided for under the REDI.

Speaker Change: That and application is required within the next two years.

Speaker Change: And there is a possibility that it can be extended by one year, but at the moment. The application window is around two years in that time, we would also need to see the environmental permit for tech attack come through and the water permits and in that time table. We would also need to be working on the financing.

Speaker Change: Pathway for the project. So we see those three as parallel work streams.

Speaker Change: And that need to develop alongside each other.

Speaker Change: In the time table, that's provided for under the Ricky.

Speaker Change: Yeah.

Tristan Pascal: Thank you, Tristan.

Alright. Thank you Tristan I'll ask my follow up I mean, you touched on financing and I was wondering as you think about financing talk the talk or whether a JV there.

Tristan Pascal: Now, as my fellow, I mean, you touched on financing. And I was wondering, as you think about financing TACA TACA, whether a JV there is on the table, or even if whether this plays into potentially a JV on Zambia. Thank you. Sure, Dalton. I think that you know what we see in Argentina is a level of confidence developing. And I think that needs, that will continue to do help as we see stability come through over the coming months. And, and... during that period for the application Riggy. During that time, we think the country will continue to open up for the right partners.

Speaker Change: Table or even whether this plays into potentially.

Speaker Change: Okay.

Thank you.

Speaker Change: Sure Dalton I think.

Speaker Change: That what we see in Argentina is that level of confidence developing and I think that needs that that will continue to do help as we see stability come through.

Speaker Change: Over the coming months and and during that period for the application to Rekey. During that time, we think the country will continue to open up for the right partners, we'd be northern Ireland made comments about our approach to partnership that is that we are we see the benefit for that we're doing that on a la Granja project a week.

Tristan Pascal: We've been open; Ryan made comments about our approach to partnership, that is, that we see the benefit for that. We're doing that on our LaGranha project where we partner with Rio Tinto in Peru. We're going through a process in Zambia where we look at partnership, and it's, in fact, co-repatima was a partnership with, called Mia, the Korean government. So, Argentina itself, we think and lend itself and that the right partners will gain confidence and gain interest in the country in order to develop a financing pathway for it, and we think that the timetable that's outlined in the riggy that two years is appropriate to consider and work through that process.

Speaker Change: Partner with Rio Tinto in Peru are we doing that and we're going through a process in Zambia, where we look at partnership and.

Speaker Change: And it's in fact Cobre, Panama was a partnership with call me are the Korean government. So Argentina itself, we think can lend itself and that the right partners, we will gain confidence and gain interest in the country.

Speaker Change: In order to develop a financing pathway for it and we think that the timetable that's outlined in the rigi that to use as is appropriate to consider and work through that process.

Speaker Change: Yeah.

Craig Hutchison: The next question is from Craig Hutchison with QD Cohen. Please go ahead. Good morning. Thanks for taking my question. Just a question around Q3. You guys obviously had a very strong, sorry, Q4, you had a very strong Q3 results, but the guidance that kind of implies that you'll be somewhere in the range of 80 to 100,000 tons for Q4, yet the setup seems pretty good at Sentinel-a-soft or a shift to more mixed oxide as a consensory. Can you just give some context as to where you're going to see that change in terms of production, the lower guidance for Q4?

Speaker Change: The next question is from Craig Hutchison with TD with Cowen. Please go ahead.

Speaker Change: Hi, Good morning, Thanks for taking my question just a question around the Q3 you guys. Obviously had a very strong Q4, you had a very strong Q3 results.

Craig Hutchison: But the guidance kind of implies that you'll be somewhere in the range of 80 to 100000 tons for Q4, and you have to setup seems pretty good at centinela softer ore and a shift to more mixed oxide consensually can you just give some context as to you know where you're going to see that change in terms of production the lower guidance for it.

Craig Hutchison: Q4 is that being driven by lower grades at Constancia or is there some planned maintenance shutdowns in the quarter.

Rudi Badenhorst: Is that being driven by lower grades of consensory, or is there some plant maintenance shutdowns in the Q4? Thanks.

Craig Hutchison: Thanks.

Rudi Badenhorst: Rudy, would you like to take that question? Thanks, Craig. Rudy? Yes, thanks. Hi Craig. You hit the nail on the head. It's primarily lower grades of consensory, and that's driven by normalization of the mixed and sulfide circuits where we swap back with mixed material going back towards its original circuit and then doubling up again on the tonnage throughput on sulfide, which generally runs at the lower grades. So that's pretty much driven through there. The stage 3 cut back at Sentinel, yes, it's nice and softer all and runs through the months a lot easier, but as we are still in the upper reaches of that cut back it is relatively tarnished and weathered material, so it doesn't float as well as your primary soul fives, but yeah, primarily driven by consensory and swappering of them all so good.

Speaker Change: Rudy would you like to take that question. Thanks, Craig Rudy.

Rudy: Yeah, Thanks, Hi.

Speaker Change: Alright, thank you.

Rudy: Yeah, you hit the nail on the head is primarily lower grades at <unk> and that's driven by normalization of the mixed and sulfide circuit swiftly.

Rudy: We swapped back with a mixed material going back towards its original circuit and then doubling up again on the tonnage throughput on sulfide at least generally it onto the lower grade so that's pretty much driven driven through the.

Rudy: The Stacy cutback at Sentinel, Yes, it's nice and a softer or and runs through the mills a lot easier, but as we are still in the upper reaches of that got back it is a relatively.

Rudy: Don East and with its material so it doesn't.

Rudy: Float as well as your primary sulfides.

But yes, primarily driven by cancer and she and swapping other malls that good.

Rudi Badenhorst: Perfect, thank you.

Speaker Change: Perfect. Thank you.

Speaker Change: Yes.

Ian Rossow: The next question is from Ian Rossow with Barclays. Please go ahead. Thanks for the follow-up. Just a quick one on working capital. Ryan, you mentioned you've filled quite a bit of material towards the end of the quarter and received the cash post quarter-end. Obviously, prices are up a bit versus the quarter average, but just wanted to get a sense of how much of that $200 million working capital build you would expect to come back for that to normalize. Of the $200 million work in capital build, $100 million of that was an increase in receivables; about $40 million of that was the AT receivable, which came in just after the quarter end. Then, of the balance of $60 million of receivables due to sales, we probably got about $20 to $30 million that came in just after quarter end, so net about $60 million of the $100 million came in just post quarter end, rather than getting in before the end of the quarter.

Speaker Change: The next question is from Ian Rossouw with Barclays. Please go ahead.

Ian Rossouw: Thanks for the follow up just a quick one on the working capital. The Ryan you mentioned, you're still quite a bit of material towards the end of the quarter and received the cash.

Speaker Change: Post quarter end.

Ian Rossouw: Well, let's see prices are up a bit so it's just a cultural average, but just wanted to get a sense of how much of that $200 million working capital build you you would expect you to come back.

Speaker Change: Back to normalized.

Ian Rossouw: Okay.

Speaker Change: Sure. So of the 200 million dollar working capital build of $100 million of that was an increase in receivables about $40 million of that was a receivable which came in just after the quarter end.

Speaker Change: The balance of $60 million of receivables due to sales, we probably got about $20 million to $30 million that came in just after quarter end, so net about $60 million of the $100 million.

Speaker Change: Came in just post quarter end, rather than getting in before the end of the quarter.

Ryan MacWilliam: Thanks, and just on the inventory side, because you're still tracking sells quite a bit behind production so far this year, is there some expected on working on the inventory working capital? Not significantly; we actually had low inventories at the end of Q2, so that's why you saw it slightly move the other way through the end of this quarter. So maybe we'll get industries a bit lower through the back end of the year, but I shouldn't assume a big release from a working capital perspective coming into the year end. A lot of that inventory is still sitting in that Cobra Panama concentrate.

Speaker Change: Thanks, and just on the inventory side, because you're still tracking sales quite a bit behind in production. So far this year is there some.

Speaker Change: Expected on working on inventories.

Speaker Change: Working capital.

Speaker Change: Oh, no not significantly we actually are at low inventories at the end of Q2. So that's why you saw it slightly moves the other way through the end of this quarter. So maybe we'll get into the trees it bit lower through the back end of the year, but I shouldn't assume a big release from a working capital perspective coming into the year end.

Speaker Change: And a lot of that inventory is still sitting in that cobre Panama concentrated.

Miles Elsock: The next question is from Miles Alsort with UBS. Please go ahead. Yes, thanks for the follow-up. A couple of things: first of all, again, going back to the preservation and safe management. How much should we put in our forecast for the cost in 2025? Should we keep running it around $12 million a quarter, or what stage will you take it a step lower than that? That would be helpful.

Speaker Change: The next question is from Myles Allsop with UBS. Please go ahead.

Speaker Change: Yes.

So yeah, just a couple of things first of all again go back to the preservation of the technology spend how much.

Myles Allsop: Should we put in our forecast for the cost in 2025 should be keep running at around $12 million a quarter or what stage will you take it a step lower than that.

Speaker Change #100: That'd be helpful and then getting back to the Zambian power question as well can you just remind us how much power you can see them currently and how much that will lift by with our story.

Tristan Pascal: Then going back to the Zambian power question as well. Use for reminders how much power you consume currently, and how much that will lift by with S3, and then if you're 50% covered, where will you be when S3 is running? Thank you. Thanks, Miles. I might ask Rudy to take that second question on the specifics of the power draw in Zambia at the moment, and then with S3. But in terms of your first question on the cost of the preservation, safe management plan, or the plan that we're running at the moment, as Rudy outlined, we were at around $13 million a month through the course of 23, and we're saying about 11 to 13.

Speaker Change #101: And then yeah, if you're 50% covered well would you be yeah, why not three years running.

Speaker Change #101: Thanks malls are mined as Rudy to take that second question on the specifics of the power draw you can send me at the moment and then with the street, but in terms of your first question on the costs Oh, the preservation side management plan all the plan that we're running at the moment.

Speaker Change #102: As Rudi outlined we we we were at around 13 million a month through the course of Q3, and we were saying about 11 to 13.

Tristan Pascal: Miles, the tension there is to make sure that we ensure the environmental security. That covers about 1,400 people on site. That's the highest proportion; is that labor cost, and it is appropriate that we continue to maintain that dedication, and that level of compliance. But certainly, there is a law of gravity, and we can't withstand that forever. We really do need to see the sources of funding for that to come through, and obviously, the concentrate in the shed is a source that can be applied and support all of the environmental works that need to happen. To date, the company's been doing that just on the basis of ensuring good compliance, but ultimately, we do need to see that come through.

Speaker Change #102: Miles the tension there is to make sure that we we ensure the environmental security.

Speaker Change #102: That covers about 1400 people on site. That's the highest proportion is that labor cost and it is appropriate that we continue to maintain a debt dedication and that level of compliance, but certainly you know.

Speaker Change #102: There is a lower gravity and we cant withstand that forever.

Speaker Change #102: We really do need to see.

Speaker Change #102: You know that the sources of funding for that to come through and obviously the concentrate.

Speaker Change #102: In the shade is a is a source that can be applied and support all of the environmental works that need to happen.

Speaker Change #102: To date the company has been doing that.

Speaker Change #102: Just on the basis of ensuring good compliance, but ultimately we do need to see that come through I think we will get to a point, where we need to go to a next step in terms of reducing that cost and obviously that surround people.

Tristan Pascal: I think we will get to a point where we need to go to a next step in terms of reducing that cost, and obviously, that's around people. and we're talking to the government around the timing and how that can work. The level of engagement is increasing, and it is important that we get those answers so that we can address those questions as to what is the right level of people and performance going forward, so that we manage that cost, manage the level of employment there at the site, but also ensure that the reason for the legacy that Panama has to bear there and all of that is part of the conversation that we're seeking engagement, having engagement on. And that's why the preservation sake management plan is important and why we continue to push and request that that's approved as soon as possible.

Speaker Change #102: And you know we.

Operator: and we're talking to the government around the timing and how that can work. The level of engagement is increasing, and it is important that we get those answers so that we can address those questions as to what is the right level of people and performance going forward, so that we manage that cost, manage the level of employment there at the site, but also ensure that there isn't a legacy that Panama has to bear there. All of that is part of the conversation that we're seeking engagement, having engagement on, and that's why the preservation safe management plan is important and why we continue to push and request that that's approved as soon as possible.

Speaker Change #102: We were talking to the governments around the timing and how that can work with the level of engagement is increasing and it is important that we get.

Speaker Change #102: These ounces so that we can address those questions as to what is the right level of people and performance going forward. So that we can manage that cost manage the level of employment there the sort of but also ensure that the the reason the legacy that Panama you know.

Speaker Change #102: It has to be there and all of that is part of the conversation that we eat.

Speaker Change #102: We are seeking engagement, having engagement on <unk> and <unk>.

Speaker Change #102: That's why the preservation and safe management plan is important and why we continue to.

Speaker Change #102: To push in and request that that's approved as soon as possible.

Speaker Change #102: Okay.

Rudi Badenhorst: Myles, I jump in here on the question on power. Currently up power draw on the assets in Xamias around about 315 NW. Obviously, all of that is written by a power supply agreement via Zesco, and with the currently with the drought, as just mentioned earlier, we've made various efforts to secure imported power directly through third party providers. At the moment, we're importing about 190 NW of that total requirement, and the rest is provided by the state utilities Zesco as per our agreements. When S3 comes online next year through commissioning and full ramp up, it's another 85 to 90 NW, but we've already, as I highlighted in LQ2, go secure power to ensure the suitable start-up and maintaining of production when S3 is running.

Myles Allsop: Myles, I'm jumping on the question on power. Currently, up power draw on the assets and Zamias around about 315 megawatts. Obviously, all of that is written by Power Supply Agreement via Zesco, and with the current play with the drought, as Justin mentioned earlier, we've obviously made various efforts to secure imported power directly through third party providers. At the moment, we're importing about 190 megawatts of that total requirement, and the rest is provided by the state utilities Zesco as per our agreements.

Speaker Change #102: Well see.

Speaker Change #102: And you're on the right.

Speaker Change #103: The question on power.

Speaker Change #102: Currently power draw.

Speaker Change #102: And on the asset since I missed it on about 310 to 215 megawatts.

Speaker Change #102:

Speaker Change #102: Obviously all of that is new.

Speaker Change #102: There isn't a supply agreement for <unk> with a currently with the drought.

Speaker Change #102: Mentioned earlier.

Speaker Change #102: He might Vegas.

Speaker Change #102: If it's too important.

Speaker Change #102: Important power directly through third party providers at the moment of importing about 190 megawatts.

Speaker Change #102: That oh requirement the rest is provided by the.

Besides utilities ESCO.

Speaker Change #102: Agreements.

Myles Allsop: When S3 comes online next year through commissioning and full ramp up, it's another 85 to 90 megawatts, but we've already, as I highlighted in our Q2, secured power to ensure the suitable startup and maintaining a production when S3 is running.

Speaker Change #102: When they see it comes online.

Speaker Change #102: The next year through commissioning and full ramp up it's another 85 to 90 megawatts, but we've already as I highlighted in our Q2 call secured power to ensure the.

Speaker Change #102: Suitable startup in.

Speaker Change #102: Maintaining a production when history is running.

Speaker Change #102: Okay.

Operator: This concludes the question-and-answer session.

Operator: This concludes the question and answer session.

Speaker Change #104: This concludes the question and answer session I'd like to turn the conference back over to Tristan Pascal for any closing remarks.

Tristan Pascal: I'd like to turn the conference back over to Tristan Pascal for any closing remarks. Thank you, operator. I'd like to thank everybody for joining us today and for your interest, and we look forward to speaking to you again our next step. Thank you.

Tristan Pascall: I'd like to turn the conference back over to Tristan Pascal for any closing remarks.

Tristan Pascall: Thank you, operator. I'd like to thank everybody for joining us today and for your interest, and we look forward to speaking to you again at our next update. Thank you.

Tristan Pascal: Thank you operator, I'd like to thank everybody.

Tristan Pascal: Joining us today and for your interest and we look forward to speaking to you again at our next update thank you.

Operator: It brings to a close today's conference call; you may disconnect your line. Thank you for participating, and have a pleasant day. .

Operator: This brings to a close today's conference call. You may disconnect your line. Thank you for participating, and have a pleasant day.

Speaker Change #106: Thanks to a close today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.

Speaker Change #106: