Q3 2024 Endeavour Mining PLC Earnings Call

Unknown Executive: from Covering Analysts. Today's conference call is being recorded and the transcript of the call will be available on the Endeavour's website tomorrow.

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

Jack Garman: I would now like to hand the call over to Endeavour's Vice President, Investor Relations, Jack Garman. Please go ahead.

Speaker Change: I would like to hand, the call over to <unk>, Vice President Investor Relations. Please go ahead.

Ian Cockerill: Hello everyone and welcome to Endeavour's Q3 2024 results webcast.

Speaker Change: Okay.

Speaker Change: Hello, everyone and welcome to Endeavour's Q3, 2024 results webcast before we start please note our usual disclaimer.

Ian Cockerill: Before we start, please note our usual disclaimer. On the call today, I'm joined by Ian Cockerill, our CEO, Guy Young, our CFO, and Djaria Traore, our Executive Vice President of Operations and ESG. Today's call will follow our usual format. Ian will first go through the highlights, Guy will present the financials and Djaria will walk you through our operating results by mine, before handing back to Ian for his closing remarks.

On the call today I'm joined by in Cocoa.

Speaker Change: Guy Young our CFO and Joe <unk> Executive Vice President of operations and ESG.

Today's call will follow our usual format.

Speaker Change: Just go through the highlights Guy will present, the financials and Julia will walk you through our operating results by mine before handing back to Ian for his closing remarks.

Ian Cockerill: We will then open the line up for questions. With that, I will now hand over to Ian.

Speaker Change: We'll then open the lineup for questions.

Speaker Change: With that I will now hand over to Ian.

Ian Cockerill: Thank you, Jack, and hello to everyone joining us on the call today. And today I'm speaking to you from our office in Abidjan in Cote d'Ivoire, where I have Djaria with me, because as a team, we recently visited a new Lafige mine and we did a board site visit. And it's really pleasing to report that Lafige is performing very well and continues to be an excellent illustration of our ability to discover, develop and operate high quality mines in West Africa. For Q3, we certainly continue to deliver against our strategic objectives as we brought both of our growth projects into commercial production, and that's supported our strongest quarter of production so far this year.

Ian: Thank you Jack and Hello to everyone joining us on the call today.

Ian: I'm speaking to you from our office in Abidjan incurred d'ivoire, where I have Jerry here with me.

Ian: Because as a team we recently visited on.

Ian: C J mine when we did our board site visits.

Ian: Really pleasing to report that the figure is performing very well and continues to be an excellent illustration of that.

Speaker Change: Our ability to discover develop and operates high courts your minds.

Speaker Change: Africa.

Speaker Change: For Q3, we certainly continued to deliver against our strategic objectives as we bought both of our growth projects into commercial production.

Ian: That supported our strongest quarter of production so far this year.

Ian Cockerill: For the full year, we expect production to be at or around the low end of the guidance range, while our all-in sustaining cost is expected to be above the top end of the range, which Djaria will go into in a little bit more detail shortly. We're on track to deliver a materially stronger H2 as we guided at the start of the year and we anticipate a strong Q4 performance as the projects deliver a full quarter at nameplate and Amarna and Hyundai Mines increased production at lower cost. As we completed this recent phase of growth, we started to generate positive free cash flow with around $100 million generated during the quarter, which we're going to be building on in Q4 and beyond.

Ian: For the full year, we expect production to be at or around the low end of the guidance range, while our all in sustaining cost is expected to be above the top end of the range, which Jerry will go into little bit more detail shortly.

Ian: We are on track to deliver a materially stronger age too as we guided at the start of the year and we anticipate a strong Q4 performance.

Ian: Projects deliver full quarter at nameplate and Mana on Hyundai mines increased production at lower cost.

Ian: As we complete as we completed this recent phase of growth, we started to generate positive free cash flow was around $100 million generated during the quarter, which were going to be building on in Q4 and beyond clearly the inflection point that everyone has been looking for and that's being delivered.

Ian Cockerill: Clearly, the inflection point that everyone has been looking for, and that's being delivered. As our earnings and cash flow generation increased, we were pleased to start delivering on our capital allocation priorities, substantially lowering our gross debt as we repaid $160 million of our revolving credit facility. Our leverage has also now turned the corner and we are trending towards our 0.5 times target. And importantly, we are delivering returns to shareholders, because so far in 2024, we've returned $229 million, and we will return at least $435 million in dividends to shareholders for both 2024, as well as 2025, which we're supplementing with additional dividends and opportunistic share buybacks.

Ian: As the earnings and cash flow generation increased we were pleased to start delivering on our capital allocation priorities.

Ian: Country, lowering our gross debt as we repaid $160 million of our revolving credit facility.

Ian: Our leverage is also now turned the corner and we are trending towards that 0.5 times target.

Ian: And importantly, we are delivering returns to shareholders because so far in 2024.

Ian: Returned $229 million and we will return at least $435 million in.

Ian: <unk> shareholders, both 2024, as well as 2025, which was supplementing with additional dividends and opportunistic share buybacks.

Ian Cockerill: Our long-term growth is underpinned by the Asafoo project and our exciting exploration program, and we see opportunity to organically adapt to our 1.5 million ounce portfolio objectives before the end of this decade, and we expect to do this whilst maintaining best-in-class margins. Finally, we're continuing to progress our ESG strategy, and our 2023 Tax and Economic Contribution Report is a testament to those efforts, highlighting a $2.3 billion economic contribution to our host countries. Over the next few slides I'll touch upon our progress this quarter before handing over to the team for a more detailed update. As mentioned, we were delighted to achieve commercial production at both growth projects during the quarter, and I'm pleased to report that both projects are ramping up in line with their plans as we achieve nameplate capacity throughput at both operations late in Q3, and we're expecting that to continue through Q4.

Ian: Our long term growth is underpinned by the <unk> project and our exciting exploration program and we see opportunity to organically. So our $1 5 million ounce portfolio objectives before the end of this decade, and we expect to do this while maintaining best in class margins.

Ian: Finally, we continue to progress our ESG strategy and.

Ian: 2023 tax and economic contribution report is a testament to those efforts highlighting a $2 3 billion dollar economic contribution to our host countries.

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

Ian: As mentioned, we were delighted to achieve commercial production at both growth projects during the quarter and I'm pleased to report the FERC projects are ramping up in line with our plans as we achieved nameplate capacity throughput.

Ian: First operations late in Q3, we're expecting that to continue through Q4.

Ian Cockerill: We delivered around $100 million of free cash flow for the quarter, which supported the improvement in our leverage I mentioned, as well as the payment of our H1 dividend. We are expecting to grow free cash flow generation going forward, and that will support our near-term capital allocation priorities whilst positioning the business well for future growth. Turning to slide 8, you can see our quarterly production and our all-in sustaining margin trend. Production has increased every quarter this year, as previously guided, to 270,000 ounces in Q3, which is an increase of 19,000 ounces over the previous quarter, with increased production from Hyundai and Lafige, and a whole 51,000 ounce better than in Q1.

Ian: We delivered around $100 million of free cash flow for the quarter, which supported the improvement in our leverage I mentioned as well as the payment of our H one dividend.

Ian Cockerill: Our all-in sustaining margin also increased by $65 per ounce, largely due to our stable all-in sustaining cost and improving gold price. On the safety side, our industry-leading lost time injury frequency rate remains stable, and it's well below the industry average, which we're very proud of. Our production is expected to be at or around the low end of guidance for the year, which is predicated on a significant increase in quarterly production in Q4, which comes from Hyundai, MANA and Sabadala, largely due to expected higher grades as well as lower rainfall, which has been well above average so far this year, almost twice the normal annual average.

Ian Cockerill: The growth projects will also support higher production, given that they are on track for a full quarter at nameplate in Q4. Our all-in sustaining cost is expected to be slightly above the top end of the range by the end of the year due to high gold prices which increased our royalty costs, lower power availability in H1 increasing costs, and the underperformance of the Sabadala-Masawa CIL operation so far this year. However, our Q4 weighted production will support an improved all-in sustaining cost, bringing us closer to the royalty-adjusted top end of the guidance range. On slide 10, you can see how our cost profile compares with our peers.

Ian Cockerill: Importantly, we remain one of the lowest cost producers in the sector, firmly in the lowest cost quartile. And whether you compare all in sustaining cost or all in cost, we are still one of the sector leaders. We've been able to maintain this cost performance largely because of our high quality asset base, but also because of the availability of highly skilled people who want to come and work for us. Stable consumer pricing, thanks to our large, long-term contracts, and the cost-benefit of two-thirds of our cost being incurred in West Frick and SIFA, which is pegged to the euro whilst we sell our gold in US dollars.

Ian Cockerill: In other words, a very nice internal, natural hedge. Given that we are well-shielded from some of the cost pressures that our peers are facing, and that our projects are helping to progressively improve the quality of our portfolio, we expect to organically grow our production towards our 1.5 million portfolio objective before the end of the decade, whilst we do maintain best-in-class margins. On slide 11, you can see that we generated approximately $100 million of free cash flow during the quarter, a quarter-on-quarter increase of $166 million, excluding the impact of the prepayment in the prior quarter, due to the increased levels of production, reduced growth capital and taxes, and the higher prevailing gold price.

Ian Cockerill: We generated $360 of free cash flow for every ounce produced in the quarter. Moving forward, we expect to continue to grow this free cash flow as the growth projects continue to ramp up and our cost performance improves. On slide 7, you can see our net debt was stable as we completed our growth phase, but stronger earnings supported an improvement in our leverage. And we're focused on reducing that leverage back towards a 0.5 target in the near term. Given that we expect to grow free cash flow generation, we repaid $160 million on our revolving credit facility, which we're pleased to say that we also successfully refinanced after quarter end.

Ian Cockerill: And Guy will provide some more details on that in his section. In this new cash flow generative phase, our capital allocation focus is on delivering attractive shoulder returns as well as making sure that we improve our balance. As you can see on slide 13, we've just paid our H1 2024 dividend of $100 million, which brings our total return this year to $229 million. We're on track to return at least $1.4 billion to shareholders by the end of 2025, which is approximately a quarter of our market capitalization being returned over the five-year period from 2020. But we don't intend to stop there, as we believe this business is well positioned to deliver significant supplemental returns and sustain an attractive return through the cycle.

Ian Cockerill: As I already mentioned, our growth projects achieved commercial production during the quarter and are ramping up in line with expectations. And importantly, both projects exited Q3 at or above 100% of design nameplate, which we expect to maintain for Q4 and beyond into 2025. Now that we've completed these projects, we're starting to look at ways to optimise, and that's what we've done with all of our other projects. We certainly expect the BIOXX expansion and Le Figue plants to outperform their design nameplates as we systematically chip away and de-bottleneck any... for all the points we have in those operations.

Ian Cockerill: On slide 15, our exploration program shows that we're on track to deliver against our five-year target to discover between 12 to 17 million ounces of M&I resource at the industry-leading discovery cost of less than $25 per ounce. So far this year, we've spent 74 million dollars focused on identifying new resources and converting resources to reserves at our cornerstone assets. Report, and Near Term Production Targets, and that's with particular reference to Sabadala Masawa, where we've identified the Kiesta Sea and Nyakafuti East targets to support production in Q4, as well as going into 2025, also looking at Manmasoto, Sokoto, and Kulingrindi targets.

Ian Cockerill: As well, at ITI, we've defined mineralization between the existing deposits, which we referred to previously at the ITI donut, and we expect to contribute, this is going to contribute, to a significant increase in endowment and support higher levels of production over the longer term. On the greenfield side, looking at the Asafoo project and the wider Tanda Igweala property, which we're showing here on slide 16, as the PFS work is well advanced and we expect to publish the results later in the quarter. We've been exploring some of the satellite targets on the property in close proximity to the Asafoo project.

Ian Cockerill: Drilling at the Parler Trend, number three target, which is less than one kilometre southwest of Asafo, we defined a shallow, high-grade mineralisation over approximately a one kilometre trend that is part of the same mineralised system as Asafo, as you can see in the right hand picture there. Mineralization is hosted on the greenstone rocks of Pala below the Asafo Basin, which has proven that both Tarquain and Berymian-style mineralization exists in the area, which increases the prospectivity of several proximal Berymian-style targets. While the PFS for Asifu will be based on last November's resources, with a large proportion expected to be converted to reserves, we will be well placed to incorporate the additional exploration upside that we're seeing into the reserves and resources ahead of our DFS, which we expect to launch once the PFS is completed.

Ian Cockerill: Finally, before I hand over to Guy, I just want to touch briefly on ESG. As we disclosed in our recent economic contribution report, we've made a $2.3 billion economic contribution to our host countries over the last year. We've increased our commitment on key initiatives to protect the people and places where we operate and support the long-term success of our business.

Ian Cockerill: This, in addition to the social and environmental initiatives, some of which you can see detailed here.

Guy Young: With that, let me hand you over to Guy to talk through our financial results. Guy, over to you.

Guy Young: Thank you, Ian.

Guy Young: And hello, everyone. In terms of the Q3 financial results on slide 19, as Ian mentioned, we delivered our strongest quarter of production for the year, which coupled with the higher realized gold prices underpinned an increase in our adjusted EBITDA, net earnings, as well as operating and free cash flow, net of the prepayment from the prior period. I'd like to walk you through a couple of these details, starting with our production and all in sustaining costs on slide 20. Our production increased by 19,000 ounces to 270,000 ounces for the quarter due to the ramp-up of the Sabadola-Massawa-Biox and Le Figue operations.

Guy Young: which achieved commercial production on the 1st of August as well as higher production at Hyundai. This was partially offset by low production at Itty, Manor and the Sabadol and Masawa CIL operations. Our all-in sustaining costs remain stable quarter-on-quarter at $1,287 per ounce. We expect operations to continue to improve in the fourth quarter as we anticipate materially stronger production and significantly lower costs. If we turn to slide 21, our year-to-date all-in sustaining cost is $1,256 per ounce, and it is trending above the top end of the full-year guidance range, which was based on a $1,850 gold price.

Guy Young: The Earth today is all in sustaining costs has been impacted by a number of factors. Firstly, high realized gold prices, increasing our sliding scale royalty costs by some $34 per ounce. Secondly, the previously disclosed lower grid power availability, largely in the first half of the year, which required the use of higher cost self-generated power, impacting year-to-date ASIC by some $35 per hour. And then thirdly, the lower-than-expected production from the Sabadol and Masawa CIL plant impacting year-to-date ASIC by around $80 per ounce. Combine these representing a $150 per ounce impact on our ASIC. While Yertedate ASIC is above the Fully O Guided range, our strongly Q4 weighted production and the associated lower costs are expected to improve our Fully O ASIC significantly.

Guy Young: although the prevailing higher gold prices were slightly offset.

Guy Young: Moving now to earnings. On slide 22, our adjusted EBITDA increased by 27% quarter-on-quarter, supported by higher production at higher gold prices. While our strong EBITDA margin remained stable at 45% as we focused on preserving our margins in this higher gold price environment. The quarterly EBITDA led to a significant improvement in our operating cash flow as seen on slide 23. To illustrate the underlying quarter-on-quarter improvement, we are showing the underlying operating cash flow in Q2 of $108 million before the prepayment that we expected. On this basis, quarter on quarter, our operating cash flow increased by 133% to $252 million thanks to the higher gold production, gold prices, and significantly lower taxes in Q3.

Guy Young: On slide 24, you can see a bridge of quarter-over-quarter variances in operating cash flow. You'll note the realized gold price for continuing operations increased by $55 per ounce, providing a positive impact of $15 million. Gold sold from continuing operations during the third quarter rose to 280,000 ounces, an increase of 42,000 ounces from Q2'24, and a positive impact of $96 million. Income tax payments decreased by $99 million to $65 million due to decreased withholding tax payments and the timing of income tax payments at ITI, Sabadala Masawa and Hyundai. This was partially offset by increased cash operating expenses as gross mining and processing costs increased due to the project ramp-ups, as well as a decrease in the working capital inflow due to an increase in trade receivables relating to VAT and gold fees.

Guy Young: Turning to slide 25, our net debt was stable in Q3 as we completed our investment phase and started de-levering. Cash generated from operating activities and the gain on foreign exchange changes of $255 million and $9 million respectively offset our investing and financing activities outflows. The outflow is related to our sustaining, non-sustaining and growth capital, as well as our gross debt repayments and shareholder return payments. Importantly, our leverage has now turned a corner, starting to decrease as we reduce our gross debt and increase our earnings simultaneously. Looking forward, we expect to continue improving our net debt and delevering our balance sheet towards our 0.5 times leverage target.

Guy Young: On slide 26, we talked through our debt structure. After the end of the quarter, we successfully closed the oversubscribed refinancing of our revolving credit facility on the same terms as the existing RCF. and elected to upsize the facility given the strong demand to $700 million from $645 million. The facility also includes an additional accordion, exercisable at our election. This has secured a long-term, flexible financing solution that can support our offshore cash position over the next five years through our next growth phase.

Guy Young: Moving lastly to slide 27 and net earnings from continuing operations, overall our adjusted net earnings increased significantly to $92 million or 30 cents per share in Q3 due to higher earnings from mine operations and lower taxes. I would also highlight a select number of other key items. Net earnings in the third quarter were impacted by the $112 million impairment from the write-down of expected proceeds from the disposal of Bungu and Wanyong, following the settlement agreement with Lilium. Importantly, we have now received the first $30 million payment and $10 million of the second payment, with the remaining $20 million expected during Q4.

Guy Young: The loss on financial instruments during the quarter included an unrealized loss on gold hedges of $49 million. a realized loss on gold hedges of $46 million and unrealized foreign exchange losses of $10 million, partially offset by an unrealized gain on marketable securities of $8 million, among other items. Current income tax expenses decreased to $68 million in Q3, largely due to a decrease in recognised withholding tax expenses as a result of the timing of local board approvals for cash-ups.

Djaria Traore: With that, I'd like to hand over to Djaria to take you through the details of our operation. Thank you, Guy, and hello, everyone. Like Ian, I'm here today in our regional office in Abidjan, where I have been spending a lot of my time giving this proximity to all our operations.

Djaria Traore: Before I jump into our mine by mine detail, I wanted to touch on our safety performance. On slide 29, we have retained our industry leading safety performance. with zero last-time injuries during the quarter. We are very proud of our safety performance, and we are looking to eliminate all serious injuries and incidents through improvement of our training, frontline supervision, and operational and procedural reviews.

Djaria Traore: Turning to the overall portfolio performance. We expect our four-year production to be at or around the lower end of the guidance range. with a materially stronger production in Q4 from both our projects which are ramping up in line for a full quarter of nameplate production, as well as expecting stronger production from the Unde and Mana Mines.

Djaria Traore: As discussed earlier, Our all-in sustaining costs are expected to be above the top end of our guidance range. However, we expect a significant improvement in Q4, aided by higher levels of production, which should narrow the gap. For the year to date, we have produced 741,000 ounces of gold at an all-in sustaining cost of $1,256 per ounce. We have successfully increased production every quarter this year. with third quarter production of 270,000 ounces. Looking at how each operation is tracking against production guidance, we are on track at Honde, Lafigue, Mana, while at ET, we expect production to be above the top end of the range, which will partially offset the lower production expected from Sabadola Masawa.

Ian: Our all in sustaining costs are expected to be above the top end of our guidance range.

Ian: However, we expect a significant improvement in quarter four.

Ian: Aided by a higher levels of productions.

Speaker Change: So narrow that gap.

Speaker Change: For the year to date, we have produced 741000 ounces of gold at.

Speaker Change: All in sustaining cost of $1256 per ounce.

Speaker Change: We have successfully increased production every quarter this year.

Speaker Change: Third quarter production of 270000 ounces.

Speaker Change: Looking at each operation is tracking against production guidance, we are on track at Hyundai Lockheed.

Speaker Change: Mono while at a key we expect production to be above the top end of the range.

Speaker Change: Partially offsetting the lower production expected from Sabadell on Massawa.

Djaria Traore: On the cost side, we expect to be above the top end of the range at Sabadola Massawa. due to lower levels of production. and Atundi and Mana, largely due to the lower power availability in the first half of the year.

Speaker Change: On the cost side.

Speaker Change: We expect to be above the top end of the range of Sabadell on Massawa.

Speaker Change: Due to lower levels of production.

Speaker Change: And thats holding manner, largely due to the lower power availability in the first half of the year.

Djaria Traore: We expect production and cost improvement at each of these operations in Q4.

Speaker Change: We expect production and cost improvement at each of these operations in quarter four.

Djaria Traore: I will now walk through each mine starting with Sabadola Massawa from slide 31. During the third quarter, production decreased slightly due to lower performance from the existing CIL plant, which was only partially offset by the ramp-up of the BIOX plant. Lower throughput of the CIL plant during the quarter was in part due to the five-day strike and maintenance activities. Additionally, the year-to-date performance has been lower than anticipated. due to lower grade feed into the CIL plant. The 2024 mine plan prioritizes depleting the Sabadola pit so that it could be used in 2025 for the deposition of in-pit sellings.

Speaker Change: I will now walk through each months talking with Abdullah Massawa, some slide 31.

Speaker Change: During the third quarter production decreased slightly due to lower performance from the existing CIL plant, which was only partially offset by the ramp up of the biomass plant.

Speaker Change: Lower throughput at the CIL plant during the quarter was in part due to the five day strike and maintenance activities.

Speaker Change: Additionally, the year to date performance has been lower than anticipated.

Speaker Change: Due to lower great fit into the CIL plant.

Speaker Change: The 2020 for mine planning.

Speaker Change: <unk> depleting the <unk> pit so that it could be used in 2025 for the deposition of in pit tailings.

Djaria Traore: As mining progressed deeper in the pits, lower volumes of high-grade ore than expected were mined. So we use other high grid oil sources to improve grade. which had a negative impact on recovery due to the semi-refractory nature. As we did during quarter two, we have been working on pre-stripping the Kiestatsi deposit. to introduce higher grade non-refractory oxide ore into the milk feed in quarter four to support higher levels of production at lower cost. On the other side, the biox processing plant is ramped up really well. Since we declared commercial production on 1st of August, and we expect quarter four to be slightly above nameplate from a throughput perspective.

Speaker Change: As mining progressed deeper in the pit lower volumes of high grade ore than expected with mine.

Speaker Change: So we use other high grade ore sources to improve grade.

Speaker Change: Which had a negative impact on recovery due to the semi through factoid nature.

Speaker Change: As we did during quarter two.

Speaker Change: We have been working on pre stripping the key specialty deposits.

Speaker Change: So we introduced higher grade non refractory oxide ore into the mill feed in quarter four to support higher levels of production at lower cost.

Speaker Change: On the other side the <unk> processing plant is ramp up really well.

Speaker Change: Since we declared commercial production on first of August.

Speaker Change: And we expect quarter four to be slightly above nameplate.

Speaker Change: Throughput perspective.

Djaria Traore: while we're also feeding higher grades and recovering more gold as performance trends toward our Life of Mines expectations.

Speaker Change: While we're also feeding higher grades and recovering more toward our performance trends towards our life of mine expectations.

Djaria Traore: Sabadola Masawa is expected to miss his production and cold guidance for the year. But we expect a materially stronger performance in quarter four and stronger overall performance in 2025 compared to 2024.

Speaker Change: Solar power is expected to meet its production and cost guidance for the year.

Speaker Change: But we expect a materially stronger performance in quarter, four and stronger overall performance in 2025 compared to 2024.

Djaria Traore: Moving on to slide 32. I want you to provide an update on the progress we are making at the BIOCS plan. Now that we have largely completed the ramp-up, we are focusing on delivering future enhancements. As we've mentioned in Part 2, we've added a transition tailing underflow line from the BIAX plant to the CIL plant to ensure that any transitional ore that does not float is immediately captured in the underflow. So far, we are extracting over 50% of the gold from this underflow through the CIL plant. which of course has increased overall recovery by around 15% while we were mining through the transitional ore of Massawa Central Zone.

Speaker Change: Moving onto slide 32.

Speaker Change: I wanted to provide an update on the progress we are making other by excellent.

Speaker Change: Now that we have largely completed the ramp up we are.

Speaker Change: Focusing on delivering future enhancements.

Speaker Change: As we've mentioned in quarter two.

Speaker Change: We've added additional telling under flow line from the buyer split to the CIL plant.

Speaker Change: To ensure that any transitional aura that does not float is immediately capture in the underfloor.

Speaker Change: So far we are extracting over 50% of the growth from these under flow through the CIL plant.

Speaker Change: Which of course has lucrece overall recovery by around 15%.

Speaker Change: While we were mining through this transitional ore of Massawa Central zone.

Djaria Traore: We expect it to hit fresh ore at the 140 RL. But the weathering horizon was 30 meters deeper than expected at the 110 RL. resulting in additional transition ore and the feed during the ramp up. Now we are mining approximately 70% of fresh ore and we are realizing higher recoveries, higher grades and better flotation as a result.

Speaker Change: We expect it to hit fresh ore at the 140 Ral.

Speaker Change: While the weathering horizon was 30 meters deeper than expected at 110 Ral.

Speaker Change: Resulting in additional transition ore in the feed during the ramp up.

Speaker Change: Now we are mining approximately 70% of fresh ore.

Speaker Change: We are realizing higher recoveries higher grades and better floatation as a result.

Djaria Traore: The next initiative we were looking at is throughput. As you may have seen with our Hunde and Iti plants, our projects have historically outperformed design in place. And with the BIOCS working well, we see scope to improve flotation through the flotation circuits by increasing the throughput feed volume into BIOCS and increase overall production.

Speaker Change: The next initiative, where we're looking at is throughput.

Speaker Change: As you may have seen with our <unk> plants, our projects have historically outperformed design nameplate.

Speaker Change: And with the buyers working well, we see scope to improve flotation saw the flotation circuits by increasing the throughput feed volume into buyouts and increased overall production.

Djaria Traore: Moving on to slide 33. This year, the production from Sabadola Masawa CIL plant has been largely responsible for Sabadola's underperformance. As I've explained earlier, we need to introduce higher-grid, non-refractory ore into the CIL plant to improve the performance, and as a result, we have accelerated mining at the Nea Kofiri East, as well as Kiesta Sea deposit. to introduce more high-grade non-refractory oxide into the melt field. with Kier starting to contribute already. Accelerating Yakafiri and Kiesta has left a shortfall in the 2025 mine plan. that we are working on fueling food exploration. As a result, we have identified three targets, Mamasato, Sekuto, and Kulukwende, all of which are high-grade non-refractory oxide targets near the Sabadola processing plant.

Speaker Change: Moving onto slide 33.

Speaker Change: This year the production from solar power plant has been largely responsible for Sabadilla underperformance.

Speaker Change: As I have explained earlier, we need to introduce higher grade non refractory ore into the CIL plant to improve the performance and as a result, we have accelerated mining at the nickel theories as well as just the deposit <unk>.

Speaker Change: <unk> introduced more high grade non refractory oxide into the milk feed.

Speaker Change: With that starting to contribute already.

Speaker Change: Accelerating your theory.

Speaker Change: And Keith Paul left of shortfall in the 2025 and mine plan.

Speaker Change: That we are working on filling for exploration.

Speaker Change: As a result, we have identified three targets now Masato <unk> <unk> <unk>.

Speaker Change: All of which are high grade non refractory oxide target near the <unk> processing plant.

Djaria Traore: And this could provide feed optionality for 2025 and support an improvement in the CL output year over year. We also have the high-grade underground resources at Kirikunda and Guluma containing M&I resources of around 500,000 ounces. at close to five grams per ton that were part of the DFS mine plan from 2028.

Speaker Change: And this could provide feed optionality for 2025 and support an improvement in the output year over year.

Speaker Change: We have we are also have the high grade underground resources at Calder, and Galoma containing MNI resources of around 500000 ounces.

Speaker Change: At close to five Gram per tonne that were part of the DFS mine plan from 2028.

Djaria Traore: So we are reviewing the possibility of accelerating the timeline to better define and incorporate these deposits into the mine plan.

Speaker Change: So we are reviewing the possibility of accelerating the timeline to better define and incorporate this deposit into the mine plan.

Djaria Traore: Before I move on to the rest of the assets. on slide 34. I wanted to provide a brief update on the solar plant constructions at Sabadola Masawa. We have now completed the installation of over 65,000 solar panels and the transmission towers as well as the lines are in place. with connection to the existing power infrastructure expected in Q4. The solar plant is a key pillar toward decarbonization strategy. and will reduce emissions by over 30 percent. as well as the cost by 20% at Sabadola Masawa.

Speaker Change: Before I move on to the rest of the assets.

Speaker Change: On slide 34, I wanted to provide a brief update on the solar plant construction as Abdullah Massawa.

Speaker Change: We have now completed installation of over 65000 solar panels.

Speaker Change: In the transmission towers as well as the lines are in place.

Speaker Change: With connection to the existing power infrastructure.

Speaker Change: That said in quarter four.

Speaker Change: The solar plant is a key pillar de carbonization strategy and we.

Speaker Change: Reduced emission by over 30%.

Speaker Change: As well as the cost by 20% WLR Massawa.

Djaria Traore: at our mine site at Hyundai on slide 33. We are pleased to have delivered improvement in production level. and Oil and Sustaining Costs through the years. And we expect our Q4 to be even a bigger step up as we introduce a higher proportion of the higher grade at carry pump or into the field. which would improve production and lower the cost. Hyundai is on track to achieve its four-year production guidance. While all in-sustaining costs are expected to be above the top end of the range, largely due to the impact we referenced earlier.

Speaker Change: At our mine site.

Speaker Change: One day on slide 33.

Speaker Change: We are pleased to have delivered improvements in production levels.

Speaker Change: And all in sustaining cost for the year and.

Speaker Change: And we expect our quarter four to be even a bigger step up as we introduce a higher proportion of the higher grade at kari pump or into the feed.

Speaker Change: Westwood improved production and lower the cost.

Ian: Yeah.

Ian: <unk> is on track to achieve its full year production guidance.

Ian: While all in sustaining costs are expected to be above the top end of the range largely due to the impact we referenced earlier.

Djaria Traore: Slide 34. Moving to slide 34. I am pleased to report that ET is expected to be the top end of its production guidance, with an all-in sustaining cost within the guidance range. Strong performance this year is the result of continued higher levels of throughput. a higher grade than expected due to ore which was sourced from the ETP. At the same time, our exploration program has successfully defined a significantly larger mineral endowment around the ET complex. which we expect will support high levels of production at industry-leading costs for longer than the current mine life.

Ian: Slide 34, moving to slide 34, I am pleased to report that <unk> is expected to be at the top end of production guidance.

Ian: Our all in sustaining costs within the guidance range.

Ian: Strong performance. This year is the result of continue higher levels of throughput.

Ian: Higher grade from expected than expected due to ore, which was sourced from the ETP.

Ian: At the same time, our exploration program are successfully defined a significantly larger mineral endowment around the ETP complex.

Ian: Which we expect will support high levels of productions at industry, leading costs for longer than the current mine life.

Djaria Traore: As we've seen on slide 36. MANA remains on track to achieve its production guidance. with costs expected to be above the top end of the range for reasons we spoke about earlier. but also as a result of slower than expected underground development. partly due to the increased focus on dewatering during quarter three following higher than expected rainfall. In quarter four, we expect stronger production of manna. The development completed this year, as well as the reduced rainfall in Q4, has improved access to more high-grid stops at the Wona Underground Deposit. This will be supplemented by consistent stock production from the steel underground deposit.

Ian: Yes.

Ian: As we've seen on slide 36.

Ian: <unk> remains on track to achieve its production guidance.

Ian: With cost expected to be above the top end of the range.

Ian: Since we spoke about earlier.

Ian: Also as a result of slower than expected underground development.

Ian: Hockey due to the increased focus on dewatering during quarter three following higher than expected rainfall.

Ian: In quarter, four we expect stronger production of mono.

Ian: The development completed this year as.

Ian: As well as the reduced rent for in quarter four as improved access to more high grade stopes.

Ian: We'll now underground deposit.

Ian: This will be supplemented by consistent to production from the underground deposit.

Djaria Traore: We expect significant improvement, and importantly, we're seeing potential to improve the long-term production and cost profile at Mano. through incorporation of additional M&I resources that are currently outside of the reserve.

Ian: We expect significant improvement and importantly, we're seeing potential to improve the long term production and.

Ian: Cost profile as mono.

Ian: Truly incorporations additional M&A resource.

Ian: Currently outside of the reserves.

Djaria Traore: Finally, moving to our fifth and newest Mine La Figue on Flight 36. which I have just visited with Ian, as mentioned earlier. We were delighted to deliver commercial production on 1st August 2024 and have been continuing to ramp up ever since. We achieved nameplate capacity for several days during quarter three. And in quarter four, we expect to be a nameplate for the whole quarter. Lafigue is on track to achieve its full year 2024 production and cost guidance, ramping up to a full year of production at around 200,000 ounces next year.

Ian: Yeah.

Ian: Finally.

Ian: Moving to <unk>, our newest mine that figure on slide 36.

Ian: I have just visited with weak yen as mentioned earlier.

Ian: We were delighted to deliver commercial production on first August 2024.

Ian: And have been continuing to ramp up ever since.

Ian: We achieved nameplate capacity for several days during quarter three and.

Ian: And in quarter, four we expect to be at nameplate for the whole quarter.

Speaker Change: <unk> is on track to achieve its full year 2020 for production and cost guidance ramping up to a full year of production.

Ian: At around 200000 on six next year.

Djaria Traore: Overall, our operations are tracking in the right direction. And we expect to deliver a materially stronger production and an all-in sustaining cost performance in Q4. to continue improving performance year on year.

Ian: Overall, our operations are tracking in the right direction.

Ian: And we expect to deliver a materially stronger production and all in sustaining cost performance in quarter four.

Ian: And to continue to improving performance.

Ian: On year.

Djaria Traore: Longer term, we are seeing attractive organic growth towards our long term of 1.5 million ounces portfolio objective. by the end of the decade, and we can deliver this while maintaining best-in-class margins.

Ian: Longer term, we are seeing attractive organic growth towards our long term of one 5 million ounces portfolio objective.

Ian: By the end of the decade, and we can deliver this while maintaining best in class margins.

Djaria Traore: Once we have outlined our SAFO PFS later this year, we will be positioned to provide our new five-year outlook next year.

Ian: Well, we have outlined our tougher PFS later this year, we will be positioned to provide our new five year outlook next year.

Ian Cockerill: I will now hand back to Ian for his closing remarks. Thanks, Guy, and thanks, Djaria. Now, as you can see, our operations performance is progressively improving, and production is expected to be near the low end of the four-year range, with costs expected to be slightly above the top end of the guidance range, although they will remain firmly in the first cost quartile compared to our peers and stay there for the longer term. A strong Q4 performance following the successful completion of our growth phase is expected to drive even stronger free cash flow generation that will support our near-term capital allocation priorities of deleveraging the balance sheet and increasing shareholder returns.

Speaker Change: I will now hand back to Jan <unk> closing remarks.

Jan: Thanks, Guy and thanks, Julia now as you can see our operations performance is progressively improving and production is expected to be near the low end the full year range with costs expected to be slightly above the top end of the guidance range. Although they will remain firmly in the first cost quartile.

Jan: Compared to our peers and stay there for a longer term.

Ian: The strong Q4 performance following the successful completion of our growth phase is expected to drive even stronger free cash flow generation that will support our near term capital allocation priorities of deleveraging the balance sheet and increasing shareholder returns.

Ian Cockerill: Given the attractive free cash flow outlook, we're well positioned to deliver against our capital allocation priorities whilst positioning the business to continue growing through asset level optimisation initiatives and the Asafo project so that we can achieve our portfolio objectives of producing 1.5 million ounces organically at best-in-class margins by the end of the decade.

Ian: Given the attractive free cash flow outlook, we are well positioned to deliver against our capital allocation priorities, whilst positioning the business to continue growing through asset level optimization initiatives and the sell through project. So that we can achieve our portfolio objectives of producing one five.

Speaker Change: He announces organically best in class margins by the end of the decade.

Ian Cockerill: And with that introduction, thank you for listening, and I'll now hand you back to the operator and open up for any Q&A. Thank you.

Speaker Change: And with that introduction. Thank you for listening now hand, you back to the operator and open up for any Q&A.

Unknown Executive: Ladies and gentlemen, we will now begin the question and answer session. As a reminder, if you wish to ask a question, you need to press star 11 on your telephone keypad and wait for a name to be announced. We will be prioritizing questions for covering analysts at this time. If you wish to cancel your request, please press star 11 again. Once again, if you wish to ask a question, please press star 11. Please stand by while we compile the Q&A queue. This will take a few moments.

Speaker Change: Thank you ladies and gentlemen, we will now begin the question and answer session.

Speaker Change: As a reminder, if you wish to ask a question you need to press Star one one on your telephone keypad and finance to be announced we will be prioritizing question as for color and at least at this time, if you wish to cancel your question. Please press star one again once again, if you wish to ask a question. Please press star one one.

Speaker Change: Mr. Baber compile the Q&A queue. This will take a few moments.

Richard Hatch: Now we're going to take our first question and it comes from the line of Richard Hatch from Berenberg. Your line is open, please ask your question.

Speaker Change: Now we will go and take our first question and it comes from the line of Richard Hatch from Baird. Your line is open. Please ask your question.

Richard Hatch: Thanks Ian and team and morning and just a few questions.

Richard Hatch: Thank you Shannon.

Speaker Change: In just a few questions.

Guy Young: First one's for Guy, just Guy on working capital, from what I can see quarter on quarter, you've built VAT receivables, there's been a slight build of inventory payables release. Can you give us some clarity on what's going to go on with working capital in the fourth quarter?

Speaker Change: First one is for going just going on working capital.

Speaker Change: From what I can see quarter on quarter.

Speaker Change: Receivables has been a slight build of inventory payables relief and can you give us some clarity on.

Speaker Change: Well, it's going to go when we feel that's captured in the fourth quarter and then.

Guy Young: And then the second question is, I think perhaps feedback we've had today from the market is, you know, impairment hedging losses, it just points to a sort of a slightly scrappy set of numbers, even though the underlying free cash flow is very positive. So question is, as we go into Q4, and into 2025, should we expect to see sort of cleaner sets of financial statements, and the all important free cash flow generation that I think that you have really talked to?

Speaker Change: And then.

Speaker Change: Second question is I think perhaps feedback we've had from the marketplace.

Speaker Change: Hedging losses.

Speaker Change: Points too.

Speaker Change: Slightly scratchy set of numbers, even though the underlying free cash flow is very positive question is as we go into Q4 and into 2025 should we expect to see sort of cleanup.

Speaker Change: Financial statements and the all important free cash flow generation. So I think that you have.

Djaria Traore: And then the last question is just on MANA.

Speaker Change: I've really talked to.

Djaria Traore: Djaria, you kind of make the point that the mine is on the turn. So, you know, should we expect to see the mill run at about 2.2 million tonnes from Q4? And, you know, what kind of all in sustaining costs should we look to see that mine get to?

Speaker Change: Then the last question is just on Manta and Jeff.

Speaker Change: You kind of make the point that the mine is on.

Speaker Change: On the 10.

Ian: Okay.

Ian: Should we expect to see the mill run at about two 2 million tons from Q4 and.

Ian: Kind of all in sustaining cost should we see that might get say.

Richard Hatch: And if it's not, you know, getting to a decent kind of 1200 or so level, does this mine really deserve to remain in the group? Quite a few questions, but thanks very much.

Ian: And if it is not getting.

Ian: Getting to a decent 200 site level.

Ian: Mine really deserve to remain integrate.

Speaker Change: Quite a few questions, but thanks very much.

Guy Young: Hi, Richard. Thank you. There are a few questions in there. Hopefully, I'll catch them all. Just if we kick off on the working capital, yes, you're right, relatively small inflows this quarter. What we have seen is some stockpile builds, particularly at Itty, but then within the underlying working capital, we've seen quite an extension of our payables, which include a variety of things, including minority shareholders, royalties payable and payroll-related liabilities. The VAT build-up is probably the biggest headwind that we've got at the moment and worth spending a second on. We've got the build-up which is predominantly within Burkina Faso.

Ian: Okay.

Ian: Hi, Richard Thank you.

Ian: There are a few question and that hopefully.

Speaker Change: Our customer.

Speaker Change: Just if we kick off on the working capital, yes, you're right relatively small inflows this quarter.

Speaker Change: What we have seen is some stockpile build particularly at 80, but then within the underlying working capital we've seen quite an extension of payables, which include a variety of things, including minority shareholders royalties payable payroll related liabilities.

Speaker Change: The VIP buildup is probably the biggest headwind that we've got at the moment.

Speaker Change: And we're spending.

Ian: <unk>.

Ian: Yeah.

Ian: We've got the buildup, which is predominantly within makena faster.

Guy Young: We still expect to be able to collect these balances in the next 12 months, but the ability for us to factor and or get cash, particularly in Burkina Faso, has been a challenge. On top of that, from a VAT perspective, you'll see a small build in Q3, which will continue into Q4, associated with Le Figue, which has got VAT, where our returns have simply not been processed yet. So an overall VAT buildup, which is going against us at this point, but we do still see capability to claw that back over the next 12 months. Sabadola has, at least within Senegal, proven to be...

Ian: We still expect to be able to collect these balances in the next 12 months.

Ian: But the ability for us to factor and or get cash, particularly and became a factor has been a challenge.

Guy Young: Stable and in line with our expectations where we had another $15 million back from that. Overall, when we look at working capital into Q4, I think we should keep a number of things in mind. I mean, overall, the expected stockpiles will provide us a release of cash in Q4. This is as we're moving through depending on mine plans, but essentially coming down in the number of our key sites. Our metal inventories and gold receivables, which are two balances that we will be focused on reducing towards the year end, offset again by the headwind of VAT in particular in Q4.

Guy Young: So if I send back...

Guy Young: Q3 to Q4 from an overall working capital perspective, I would expect it to be largely flat. The one thing that I would just highlight is that in Q4, we will also see the repayments, the prepaid, which we shouldn't lose sight of.

Guy Young: Richard, you touched on two other topics, the first is impairment. So, yes, we've got a 112 million impairment charge in the accounts for this quarter. This is relatively simple in the sense that it relates, obviously, to the Bungu Wanyan. We de-recognized and then put through an impairment to effectively bring down the balances that were expected from lilium to the amounts that we are expecting from the Burkina Faso state. And I mentioned in the slide run through the cash flow that we've seen coming in. We have $20 million outstanding on that. But that single impairment is significant in the quarter.

Guy Young: No, we don't foresee further impairments on the balance sheet. We will be doing our reviews. at Q4 with our new R&Rs, to be checking that obviously, but at this point in time hopefully that from an impairment perspective is out of the way.

Guy Young: The third element that you touched on was associated with our hedging. And I'd probably, I think the right way to try and think this through is to split the hedges. We have some hedges associated with cap and collars, which are relatively well disclosed in the accounts. We've eliminated some of those in the quarter. And we do have some in Q4. These are capped at 2400. So that is probably what you might have expected to have seen. Arguably something that you wouldn't have expected as much as our LBMA averaging. This is a program that we implemented just to try and reduce our exposure to gold price fluctuations at the end of the month and then at the end of the quarter, because that differs from what are relatively lumpy gold sales during the same period.

Guy Young: In essence, what we're seeking to do is ensure that the total sales, which we settle at an average spot selling price. are brought back to an LBMA average. And in the instance where the spot price is greater than the LBMA average, we record a loss. And if the spot price is below the LVMA average, we would have a gain. We've put specifically Table 13 in the MD&A, a recon just to show where we've come out. And when you look at the realized prices versus LBMA, you'll note that we were $9 below in Q3, but on a year-to-date basis, $15 above.

Guy Young: So the program itself, we still think is a good one to have in order for us to be able to try and be as close as possible to that LBMA average over the quarter and over the year. Hopefully that helped.

Djaria Traore: I'll obviously take follow-ups, but maybe to Djaria on the manor question first. Thanks, guys. So just to refer to the Manak question, I think what we've seen, we continue to expand the underground operations at WANA with the Danguna and Avira development that we've been doing for the past quarter, with the aim, of course, of gaining increased access to high-grid soaps during quarter four. It is expected that going forward, we will be above the 2.2 million tons annually to support the plant, as well as to drive the increased level of production at lower cost. Obviously, during quarter three, I think we've talked about the higher cost, they were really elevated largely due to the lower gold volume sold, the higher royalties due to the increase in gold pricing.

Djaria Traore: as well as the development that we had to do to ensure that we had access to the source at the underground. We are, what we've been seeing for the past few weeks, we are very encouraged by the positive trends in mining and processing unit costs at MANA, as the ramp-up of the underground continues to progress, which is also supported by higher fleet availability, which was partially offset by the increased watering activities during the wet season, as I mentioned during the side-by-side explanation earlier. So we are optimistic and seeing both the increase in throughput, as well as an improvement in unit costs.

Richard Hatch: Okay, that's all very comprehensive and very helpful. Thank you very much. Thank you.

Don Demarco: Now we're going to take our next question and it comes from the line of Don DeMarco from National Bank Financial. Your line is open, please ask your question. Thank you, operator. And good morning, Ian and team. A couple questions for me. I'll give you both questions. So at La Figue, you're expected to exceed nameplate for Q4. Does this put you at the high end of the full year guidance range of 90 to 110? And my second question, at Sabadal Masala, by accelerating Kiesta and Nakivere East in Q4, what are the implications on 2025 production? Thank you.

Don Demarco: I'll listen to your response.

Djaria Traore: Yes, so regarding Lafigue, I think as we said, we have declared commercial production on August 1st and we're really very pleased with the ramp-up of the production at Lafigue. The site is on track to deliver within the guidance that was published and of course, as we mentioned, with all the work that is in progress, we believe that we will be in the range of the 200,000 ounces into next year as well. Okay, thank you. Thank you.

Amos Fletcher: Now we're going to take our next question. And the question comes to the line of Amos Fletcher from Barclays. Your line is open. Please ask your question. Yeah, hi, everybody. Good afternoon. A couple of questions from me.

Amos Fletcher: The first one, I guess, sort of reiterating the one Don was just asking on Sabadola. Obviously, you're pulling forward some production from 2025 into the 2024 mine plan. What should we assume as a baseline for 2025 production at this stage?

Djaria Traore: And then the second question is on the all sustaining cost guidance for 2024. Just wondering if you could be a bit more precise on what we should expect for all sustaining costs for Q4, just given the guidance is relatively loosely worded. That would be great. Thank you very much.

Djaria Traore: So I will take the questions from Sabadona Masawa, Q4. As I've explained earlier, though we are taking some of the ounces from 2024, we are actually filling the gap with near mine exploration. I've mentioned the three targets that we have, Kolukwende, Masato, and Sekoto. We are currently working very closely with our exploration, so we believe we expect to be able to fill those extra ounces that we're bringing in from 2025, fill them in with those exploration targets. I think, Amos, with regard to your question on all-in sustaining costs for Q4, as you can see from Q3, a large influence of the increase in cost in Q3 was driven by the poorer operational performance, and with the stronger operational performance that we're anticipating in Q4, we believe that there will be a very significant reduction in the Q4 all-in sustaining cost, and as you said, much closer to the top end of guidance that we're talking about in our release.

Djaria Traore: So we're not going to be that specific as yet, but we're certainly looking for an appreciable improvement over Q3. Okay, that's great. Thank you very much. Thank you.

Djaria Traore: Dear Speakers, I believe you wanted to answer the second question for Don. We've done that. Thank you. Okay, thank you.

Andrew Breichmanas: Now we're going to take our next question then. And the question comes from the line of Andrew Breichmanas from Stiefel Nikolaus Europe. Your line is open, please ask your question. Thanks and good afternoon all. I guess my first question is on the $1.5 million as per annum target that you've talked about. When you put that type of number out there, what timeframe do you need to see the portfolio maintain that level of production to consider it a sustainable level? And I assume a software comprises a significant portion of that incremental growth, but where else in the portfolio do you see opportunities to reset targets?

Ian Cockerill: Yeah, thanks, Andrew. Interesting question. You're right. I mean, a lot of that will be coming from Asafo. I think we said previously that Asafo is not just growth, but it is also an element of replacement. If you're looking at our existing operations. We certainly do see some potential for a modest increase at Itty, and assuming that the Itty Donut allows us to have a more, you know, slightly higher volume, higher grades in the coming out. But there is a lot of engineering work that is required for us to prove that up. Obviously, La Figue will be a key component of our current base.

Ian Cockerill: And obviously, we'll be looking to recapture some of the performance that has been lost this year coming out from Sabadala. And if I look at the more recent exploration that's been taking place on the mining permits at Sabadala, you know, there is some very encouraging prospects for getting, you know, a much better mineral inventory out of that place, which will help sustain the performance. But primarily, the 1.5 will come from the SAFU. We will be talking about the results of the PFS probably towards the middle of December. And then you can have a look at what we're going to be saying there.

Ian Cockerill: But so far, you know, based upon the preliminary review that we've seen, it's looking very promising. That's great. Thanks.

Ian Cockerill: And I guess my second question is more specific to Asafu. Some of the drilling that you you talked about during the quarter and encountering mineralisation in the in the Greenstone rocks, has that changed your interpretation of the district or the mineralisation there? No, not at all. In fact, if anything, it's confirmed our original suspicion that what we're seeing here is a project which is not a purely Borromean type of project, which is more typical of what we tend to mine within Endeavour. But we're starting to see, and particularly in the Asafu bit itself, it does seem to be more Tarquam in its style.

Ian Cockerill: And because of that, you know, you're just seeing. larger thicker sequences. You're seeing that the mineralization contained within sort of massive sandstones and what have you. So it actually is looking quite promising. And You can see from the slide that we put up in the presentation, you can see how, you know, even though it's a basin on the, should we call it, on the western side of the basin, it's more Burymian, and as we go to the eastern side of the basin, you know, it's a gradation towards more Tarquain, which is typically what you would see in Ghana, which is literally just across the border, you know, a little bit further east.

Ian Cockerill: So not surprising, but actually very, very promising and quite exciting in terms of, you know, decent, you know, slightly longer life potential project, which is what we really want to look for. Thank you very much. Thank you.

Ovais Habib: Now we're going to take our next question. And the question comes in line of Ovais Habib from Scotiabank. Your line is open. Please ask your question. Thanks, Operator. Hi, Ian and Endeavour team.

Djaria Traore: Glad to hear both projects are wrapping up well, and look forward to attending both sites mid-November, and also meeting Djaria in person as well. A couple of questions for me. At Sabadala, I mean, there's been a lot of questions on Sabadala in terms of the CIL. I mean, with the high-grade oxide ore being mined at Kiesta, see the potential of exploration and development of oxide around Sabadala. Do you believe the majority of the risk, especially within the CIL plant, is now behind us? Or do you see any additional risk going into 2025? Also, any additional plant shutdowns expected in Q4 as well, if you can comment on that?

Djaria Traore: Thank you, Habib, for the question. Obviously, what we are currently doing is to make sure that we increase all near mine exploration to assure and guarantee that constant feed of non-refractory ore into our CIA plants. I think that's very important for us. I think the challenges that we've had is the acceleration of the ore into the 2024 mine plant. That means that we had to accelerate the exploration to backfill and define as well at 2025. We have identified really some exciting non-refractory ore, the three ones that I mentioned earlier. And the beauty with those three ones is that they're pretty close to the Sabadola peak as well.

Djaria Traore: Can you just remind me again, what was the second part of your question, Habib? The second part, Djaria, was just on any sort of planned shutdowns expected in Q4. So we are not expecting or plan to have any, any shut down. I think the some of the ones that we have in Q3, they were all addressed and they were primarily on the CIL plant. It was mainly due to some of the motor of the sacked mill. But fortunately, we had exactly what we needed on site. They were addressed. So we're not expecting any. There's not unforeseen of shutdown in quarter four, other than the regular maintenance that we all do on a mine site.

Ovais Habib: Perfect. Thanks, Jerry, for the color.

Ovais Habib: And just just moving on to Asafo. You know, obviously, Asafo seems to be, you know, growing in terms of, you know, exploration upside, looking pretty decent. You know, and it looks like it's potentially larger than Lapige and Hyundai. So how should we be looking at the size of the operation at Asafo compared to your previous builds? Yeah, look, I mean, obviously, SAFU, sorry, Lafayette, you know, the 4 million ton operation, the The PFS has looked at a variety of options in terms of sizing, and we specifically in the PFS only looked at the resource contained within the Asafo Pit.

Speaker Change: Yes look I mean, obviously.

Ian: Suffer.

Ian: Sorry.

Ian: <unk>.

Ian: As a 4 million ton operation.

Ian: <unk>.

Ian: The PSS is looked at a variety of options in terms of sizing.

Ian: And we specifically in the PFS only looked at the.

Ian: The results are contained within the software piece, we have not included anything like from Paula or in the other satellite deposits.

Ian Cockerill: We have not included anything like from Parler or any of the other satellite deposits Ovais. But because of that, it will be a very similar design concept to what we have at Le Figue. Also, it's hard material, so we'll probably be going with a HPGR configuration on the comminution section. We've seen at Le Figue that has worked well in terms of quite significant reduction in power costs and power demand. And as Cote d'Ivoire expands and grows, demands on the grid get stronger, so anything that we can do to cut back on power is important. And HPGR provides not only power saving, but also the ability to deal with hard rock.

Ian: But because of that it will be.

Ian: Very similar.

Ian: Design concept to what we have at <unk>.

Ian: It's also it's hard material, so we will probably be going with the <unk>.

Ian: <unk> configuration on the <unk> section.

Ian: We've seen at <unk>.

Ian: That has worked well in terms of.

Ian: Quite significant reduction in power costs.

Ian: Our demand in Q.

Ian: <unk> expands and grows the demands on the grid gets strongest engine that we can do.

Ian: To cut back on power is important and HP GR provides not only power savings, but also the ability to deal with hard rock.

Ian Cockerill: But in terms of sizing, it's going to be a larger, likely to be a larger size than Le Figue, but all will be revealed in December. But look at Le Figue, think of something a little bit bigger than that, and that's the sort of ballpark that we'll be operating within. And we're probably going to be looking at something which has got somewhere between sort of anywhere between a 13 to 15 year mine life based upon SAFU. Our track record of our projects is that we have them at nameplate, and as we operate them, we tend to bottleneck and we tend to increase not only the size of throughput or the capacity of throughput, but also the size of the endowment that we're processing.

Ian: But in terms of sizing.

Ian: It's going to be a larger are likely to be a larger size.

Speaker Change: C J.

Ian: But all will be revealed.

Ian: In in December.

Ian: Look at the Seagate.

Ian: Think of something.

Ian: It will be bigger than that and that's the sort of ballpark that we will be operating with it.

Ian: And we're probably going to be looking at something which.

Ian: As Scott somewhere between anywhere between 13% to 15 year mine life based upon suffer.

Ian: Our track record of our projects is that we have the nameplate and then as we operate them we tend to Debottleneck and we tend to increase not only in the size.

Ian: Throughput or the capacity throughput, but also the size of the endowment that were.

Ian Cockerill: And to be honest, I see no difference with the SAFU, I think it's going to follow exactly the same We certainly wouldn't want to go too big up front and have a risk, so we'll play it relatively conservatively but with an eye to having the flexibility of growing organically once we're up and running.

Ian: <unk> and to be honest I see no difference with the software I think it is going to follow exactly the same.

Ian: The same process with <unk>.

Ian: Certainly wouldn't want to go too big upfront and half.

Ian: Our risk so we will play it relatively conservatively, but with an eye to having the flexibility.

Ian: Growing organically once we're up and running.

Ian Cockerill: Thank you. And that's great.

Speaker Change: Thank you that's great color and just my last question.

Ian Cockerill: And just my last question, you know, just moving on to, you know, in terms of the mining codes within within the countries that you operate in, with Mali going forward with the new 2023 mining code, any additional discussions that you've had with Burkina Faso, Ivory Coast, Senegal, for any proposed changes to their mining codes? And also, are these countries going to continuously consulting with Endeavour on these changes? Yeah, I mean, look, I think the recent increase in the mining codes in Burkina Faso have been well documented. We have previously spoken how there was the, shall we call it, the initial declaration by the state.

Ian: Just moving onto.

Ian: In terms of the mining codes within within the countries that you operate in.

Ian: With moly going forward with the new 2023 mining code any additional discussions that you've had with bringing up vessel I recall a synagogue.

Ian: For any proposed changes to their mining codes.

Ian: And also are these countries going to continuously consulting with endeavour on these changes.

Ian: Yes.

Ian: I think the.

Ian: The recent increase in the mining codes in Makena vessel have been well documented.

Ian: We have previously spoken.

Speaker Change: There we'll see.

Ian: Should we call it.

Ian: The initial declaration.

Ian Cockerill: They wanted to increase take of the state. There were representations by the Chamber of Mines in Burkina Faso to government saying that we would hope that they would honour existing conventions. And in fairness, what came out of those discussions was the fact that there's a new mining code coming in, which is, yes, it's an increase, but really it's just bringing it in line with the rest of West Africa. But more importantly, they did listen to the Chamber and they accepted that existing conventions would be honoured. And for us, the new mining code in Burkina Faso will not impact Mana Mine until 27, when that permit gets renewed.

Ian: At the state they wanted to increase.

Ian: The take of the state.

Ian: They will representation by the chamber of mines in Burkina Faso government, saying that we would hope that they.

Ian: On the existing conventions.

Ian: And in fairness, what came out of those discussions.

Ian: It was the fact that there is a new mining code coming in which is yes is an increase but really it's just bringing it in line with the rest of West Africa, but more importantly, they did listen to the chamber.

Ian: Set to that existing conventions would be honored and for us the new mining code in Burkina Faso will not impact Mana mine until 2007, when that permit gets renewed and Hyundai the time. It gets renewed in 2029, so there will be no no changes.

Ian Cockerill: And Hyundai, the permit gets renewed in 2029. So there will be no changes, certainly in the medium term, on both of those operations. In Cote d'Ivoire, there has been some discussion about wanting to, again, increase the rates. We are in discussion with government and just saying to look, just be careful. You're now starting to push the outer edge of the envelope. It's all very well, we understand that you need taxes. But again, we invested in operations given certain criteria. Be careful that you don't bring in criteria that discourages investment, because the gold industry in Cote d'Ivoire is actually a very healthy portion of the GDP of Cote d'Ivoire.

Ian: Certainly.

Ian: Medium term on both of those operations.

Ian: In Cote d'ivoire.

Ian: There was there has been some discussion about wanting to again increase.

Ian: The the rates we are in discussion with government and just seem to just be careful you are now starting to push the answer edge of the envelope.

Ian: It's all very well, we understand that you need to taxes, but again, we invested in operations given certain criteria.

Ian: Be careful that you don't bringing criteria that discourages investment because the gold industry in Cote d'ivoire is actually a very.

Ian: Healthy portion.

Ian Cockerill: And there's some good long-term potential. And clearly, we don't want the SAFU to be unduly prejudiced by any deleterious increase. As far as Senegal is concerned, there hasn't been anything official at the moment. Government have been focusing more on oil and gas. Would I suspect that they will come back at some stage and want to try and change things for the mining sector? I think the likelihood is that they will certainly want to try and do it, but there's been nothing specific as yet. What I would say in all three of the jurisdictions that we operate in, I think the quality and the access that our public affairs people have, and I think the mutual respect in which both parties are held in, means that we are a pretty good group when it comes to sort of sitting down with government privately behind the scenes and saying, look, we understand you want to do certain things, but this is not necessarily the right way to encourage longer term investment.

Ian: VP of Cote d'ivoire, and there's some good long term potential and clearly.

Ian: We don't want the software to be unduly prejudice by any.

Ian: Deleterious increase.

Ian: As far as Cingal is concerned.

Ian: There hasnt been anything official at the moment.

Ian: Governments have been focusing more on oil and gas.

Ian: I suspect that they will come back at some stage and want to try and change things for the mining sector.

Ian: I think the likelihood is that they will certainly want to try and do it.

Ian: But there's been nothing specific as yet.

Ian: I would say in all three of the jurisdictions that we operate in I think the the quality and the access that our public salespeople have.

Ian: And the I think the mutual respect and which both parties are held and means that we are pretty good.

Ian: Group when it comes to sort of sitting down with government privately behind the scenes and saying look we understand you want to do certain things, but this is not.

Ian: Not necessarily the right way to encourage longer term investment won't change what there at the moment, but be careful that you don't.

Ian Cockerill: It won't change what's there at the moment, but be careful that you don't prevent fresh investment coming in. We've seen down in South Africa, for instance, basically when they bought in the new mining code in 2004, 20 years later, we see what's happened. There's effectively been almost like an investment strike there. That's the last thing that I think West Africa needs. It needs this investment. It needs the tax flow. It needs the employment. I think we as business have a responsibility to sit down and have an open and honest dialogue with the authorities to make sure that we get that balance right.

Ian: No fresh investment coming in.

Ian: We've seen done in South Africa for instance.

Ian: When the board and the new mining code in 2000 and for 20 years later, we see what happens.

Ian: Effectively being almost like an investment strike that that's the raw sooner I think West Africa.

Ian: <unk>.

Ian: This investment it needs.

Ian: So it means the employment.

Ian: I think he is.

Ian: His business.

Ian: <unk> ability to sit down and have an open and honest dialogue with the authorities to make sure that we get that balance right.

Ian Cockerill: Perfect, Ian. That's a great color as well.

Ian: Okay.

Ian: Perfect.

Ian Cockerill: That's it for me. And thanks for taking my question.

Ian: That's great color as well.

Ian: Is it for me.

Ian: And thanks for taking my questions.

Daniel Major: Thank you.

Speaker Change: Thank you.

Daniel Major: Now we're going to take our next question. and it comes from the line of Daniel Major from UBS. Your line is open.

Ian: Now we're going to take over next question.

Speaker Change: And it comes from the line of Daniel Major from UBS. Your line is open. Please ask your question.

Daniel Major: Please ask a question. Hi, thanks very much. A few questions. The first one, just to clarify on the impairment, I think it was $300 million that your original headline sale price for Wanyon and Bogu. Can you just remind us again how much you've received so far? You said you were going to receive $20 million in Q4. Is that all of the cash payment and just royalties left and how much? Yeah, just a reconciliation of where we are now relative to $300 million an ounce. Sure, Daniel, so if I just pick up kind of chronologically, we received $33 million initially from Lillian themselves.

Speaker Change: Hi, yes.

Speaker Change: Thanks very much.

Ian: A few questions.

Ian: The first one.

Speaker Change: Just to clarify on the impairment I think it was $300 million that youll original headline sale price.

Speaker Change: For one year and then can you just remind us again.

Speaker Change: How much you've received so far you said you are going to receive $20 million.

Speaker Change: In Q4.

Speaker Change: Is that all of the cash payment of just the royalty is left and how much yeah. Just just a reconciliation of where we are now relative to $300 million announced.

Ian: Sure.

Ian: Sure.

Speaker Change: Daniel So if I just pick up kind of chronologically we received $33 million.

Ian: Italy from Lillian themselves.

Guy Young: We then received a very small proportion. Following on from that, just over a million. And then that was it from the lillium cash inflows. From the state, we've received 40 in total. thus far, and there's a further 20 in Q4. That would bring us to the overall cash, the upfront cash consideration. and then we would still have the NSR over the $400,000. Daniel, if I can just add to that, and I think it's important to put a bit of perspective here. You know, as Guy has suggested, you know, over $90 million in cash by the end of the year, and then the royalty, you know, the 3% royalty over 400,000 ounces.

Ian: We then received a very small proportion.

Ian: Following on from that just over a million.

Ian: And then that.

Ian: Was it from the lithium cash inflows from the states. We've received 40 in total.

Ian: Thus far and there is a further 20.

Ian: In Q4 that would bring us to the overall cash.

Ian: Cash consideration.

Ian: And then we would still have the MSR over the 400000 ounces.

Ian: Okay.

Ian: Okay.

Ian: If I can just add to that.

Ian: I think it's important to put a bit of perspective here guys.

Ian: Guys suggested over $19 million in cash by the end of the year and then the the royalty the 3% royalty or 400000 ounces. I think gives you sort of net present value all of that is going to be somewhere in the order of about 100 $115 million to $120 million depending on the.

Guy Young: I think if you sort of net present value all of that, it's going to be somewhere in the order of about $100,000, $150,000, $120,000, depending upon what discount rate you use. And that's for both Wanyo and Bungu. As things stand, Bungu is basically, you know, it's not operational. It's right in the heartland of some very sort of active terrorist activity. So the original $300 million was split fairly evenly, about $150 each for Wanyo, and $150 odds for Bungu. Today, Bungu arguably is worth nothing. So even though, you know, we've got less than we wanted, I think it's fair to say that what we have received is probably a reasonably fair reflection of what the actual value is today.

Ian: Discount rates you you you use and thats for both <unk> and <unk>.

Ian: As things stand longer it's basically it's not operational its right in the heartland.

Ian: Of some very active.

Ian: Terrorist activity.

Ian: The original 300 odd million was split fairly evenly about 150 each for for one year.

Ian: And 150 odd for <unk> today <unk> <unk>.

Ian: He believes worth nothing so even though we've got less than we wanted.

Ian: It's fair to say that what we have received is probably a reasonably fair reflection of what the actual values.

Guy Young: And that's just a sad fact. If we could have sold it earlier, great, but we didn't. But it's where we are.

Ian: Today.

Ian: Essentially just sidetracked.

Ian: If we could have sold it earlier, great that we didn't but it's it's where we are.

Guy Young: That's helpful. Thank you.

Guy Young: And then the next one, I'm just going to numbers again, slightly on the cash flow statement, which I think I've done a few times before. But if I look at the cash tax that you've paid year to date, and then kind of extrapolate into Q4, probably gets about $350 million of cash outflow. Is that a reasonable assessment for the full year? at Daniel, I think. Let me just start off, Q4, yes, we've got a residual payment on our corporate income tax, so we're expecting a fairly minimal amount, around 20, and then withholding taxes down to zero because we obviously pay that up front before we start doing the upstreaming, so a small proportion of cash out relating to our overall tax in Q4.

Speaker Change: That's helpful. Thank you.

Ian: Yeah.

Ian: The next one.

Ian: Turning to numbers again slightly on the cash flow statement I think have done a few times before but.

Ian: If I look at the.

Ian: Cash tax paid.

Ian: Paid year to date and then.

Ian: Kind of extrapolate into Q4.

Ian: Probably get to about $350 million of cash.

Ian: Outflows that is a reasonable.

Ian: And while the assessment for the full year.

Speaker Change: Daniel I think.

Daniel: Let me just sort of Q4, yes.

Ian: Yes, we've got a residual.

Ian: Payments on a corporate income tax so we're expecting a fairly minimal amount.

Ian: Around 20.

Ian: And then with holding taxes down to zero, because we obviously pay that upfront before we start doing the upstream so a small proportion of cash out.

Ian: Lighting to our overall tax in Q4.

Guy Young: I think that brings us more to $300 million, but very happy to try and reconcile offline if your numbers are very different. Yeah, so just to be clear, it's quite hard for us to predict the variability of cash tax. Okay, so about 300 million would be a sensible number based on how you could see the scheduling of those of those payments. Okay, that's helpful, thanks.

Ian: I think that brings us more to a 300 million, but very happy to try and reconcile offline.

Speaker Change: Your numbers are very okay.

Scott: Yes, so just to be clear, yes, Scott.

Scott: Quite hard for us to predict the variability of the cash tax side.

Speaker Change: So about $300 million would be a sensible number based on how you can see the scheduling of those of those.

Speaker Change: Payments.

Guy Young: And then the same on the dividends to the minorities. I think you've paid out about $116 million a year today. Is the big expectation for Q4, or is that most of where you'd expect it to be? Daniel, if we again work in sort of roundish numbers and happy again to pick up off line if necessary, but total declared for the year roughly 750 of which roughly 600 comes to us. So, I think the number that you were quoting is probably of withholding tax and minority dividends together, and those have largely... So just to be clear, I'm just looking directly in the dividends and non-controlling interest in your cash flow statement.

Speaker Change: Okay.

Speaker Change: That's helpful. Thanks, and then the same on the on.

Speaker Change: On the dividends too.

Speaker Change: To the minorities I think you've paid out about $116 million yesterday.

Speaker Change: It's a big expectation for Q4 or is that most of what you would expect it to be.

Daniel: Daniel again.

Speaker Change: We're considered roundish numbers and happy again to pick up offline if necessary, but total.

Speaker Change: Flat for the year roughly 750.

Speaker Change: Of which roughly 600 comes to us. So I think the number that you were quoting is probably withholding tax and minority dividends together.

Speaker Change: And.

Speaker Change: Got it.

Speaker Change: So just to be just to be clear I am just looking directly in the.

Speaker Change: Dividends to Noncontrolling interest in your cash flow statement to that payment is $116 6 million.

Guy Young: The year-to-date payment is $116.6 million. What should we be expecting in that number for the full year? Thank you. Sorry, I thought you said 160, so I was trying to work out where you got that number. Yeah, 116, sorry, yeah. So, Daniel, in Q4, in terms of minorities, we're not expecting any significant amounts in terms of outflows. Okay.

Speaker Change: What should we be expecting in that number for the full year.

Speaker Change: Thank you sorry, I thought you said $160 I was trying to work a waiver of 116, sorry, yeah.

Speaker Change: In Q4 in terms of minority, we're not expecting any significant amounts in terms of outlet.

Speaker Change: Yes.

Guy Young: And just on those two variables into next year, can you give us any steer because over the last couple of years, I guess they've been pretty material items. um in terms of sort of the bridge between the EBITDA and the cash flow um so next year is that where should we be thinking that either the cash tax rate or and the dividend minority would be landing in this kind of um price environment? If you don't mind, I'm going to sort of fall back on, let me give you something when we come to guidance. So given that we're in the middle of budget season, what we do now is we take a look forward on an assumed gold price and production level and calculate what it is that we can afford in inverted commas to be able to distribute.

Ian: Okay.

Speaker Change: And just on those two variables into next year can you give us any steer because over the last couple of years, I guess, they've been pretty material items.

Speaker Change: In terms of the bridge between EBITDA and the cash rate.

Speaker Change: So next year is that.

Speaker Change: Should we be thinking the either the cash tax rate.

Speaker Change: The dividend Spinotti would be landing in this kind of price environment.

Speaker Change: If you don't mind I'm going to sort of pull back on let me give you something when we come to guidance. So given that we're in the middle of budget season. What we do know is we take a look forward on an assumed gold price and production level and calculate what it is that we can afford an inverted commerce to be able to distribute as soon as we've got those numbers.

Guy Young: As soon as we've got those numbers, happy to talk you through that. In next year, we will be looking to publish a forward-looking effective tax rate. We will also split out our deferred tax to make the corporate income tax line easier to understand and give you forecasted... Cash Outs or Cash Tax Paid, so we'll provide you with more numbers but I'll have to ask you to wait until we provide guidance early next week. Okay, thanks.

Speaker Change: Happy to talk you through that.

Speaker Change: In next year, we will be looking to publish a forward looking effective tax rates. We will also split out our deferred tax to make the corporate income tax line easier to understand.

Speaker Change: And give you forecast.

Speaker Change: Cash outs or cash tax paid so we'll provide you with more numbers, but I'll have to.

Speaker Change: Ill have to ask you to wait until we provide guidance early next year.

Guy Young: And then just final one on the numbers again. You mentioned you got the reverses of the $150 million prepayment coming through in Q4. Can you remind me where that will flow through the financial statement? It'll be coming through our operating cash flow line. Deduct $150 million from operating cash flow to adjust the prepayment. Correct, Daniel. There'll also be an interest chance. I think it's 158, but yes. Okay, great, thanks a lot. Thank you.

Speaker Change: Okay. Thanks, and then just final one on.

Speaker Change: And I must again.

Speaker Change: You mentioned, you've got the reversal of the $150 million prepayment.

Speaker Change: Coming through in Q4, just remind me can you remind me where that will flow through the financial statements.

Speaker Change: It will be coming through our operating cash flow line.

Speaker Change: So deduct did that $250 million from operating cash rates or just the prepayment.

Speaker Change: Correct, Daniel those have been interest charge, so I think it's 158, but yes.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Alright, Thanks, a lot.

Speaker Change: Thank you.

Djaria Traore: Now we're going to take our last question for today and it comes from the line of Felicity Robson from Bank of America. Your line is open, please ask your question. Felicity, um... Your question around the grid power. So obviously, as we mentioned, we have few challenges with the grid availability, both in Burkina Faso and Cote d'Ivoire during the first two quarters of the year.

Speaker Change: Now we're going to take a last question for today and this comes from the line of furniture, Tim Robinson from Bank of America. Your line is open. Please ask your question.

Tim Robinson: Good afternoon, and thank you for taking my question.

Speaker Change: There have been some issues with grid power availability this year and you've seen some improvement in the quarter can you give us some color on what measures are being taken to mitigate some of this volatility and how the solar plant.

Speaker Change: <unk> is progressing please.

Speaker Change: Let's see.

Speaker Change: Your question around the grid power. So obviously as we've mentioned we would have challenges with agreed availability both in Burkina Faso and could give what's during the first two quarters of the year.

Djaria Traore: Just want to be clear, this is not a structural problem. There were short-term problems and immediately what we've seen is a good reaction from both authorities in Cote d'Ivoire and Burkina. The issues have been addressed. We've seen a significant improve starting in quarter three, so much so that on some of our side we're nearly back to our budget plan availability. Of course, the issues that we've seen in Burkina and Cote d'Ivoire is not particular to those countries and I believe as your population increases, the demand will increase. For sure, we've seen that a few projects are already in line or coming to line in Cote d'Ivoire and Burkina, so we do not expect such instability to continue.

Speaker Change: Just want to be clear.

Speaker Change: This is not a structural problems that were short term problems.

Speaker Change: And immediately what we've seen is a good reaction from both a authorities and could you win but keynote the issues have been addressed we've seen a significant improve.

Speaker Change: Starting in quarter three.

Speaker Change: So that on some of our site, we nearly back 12 budget.

Speaker Change: Availability.

Speaker Change: Of course, the issue that we've seen in Buchanan could you what is not particular to those countries and I believe as you put traditional increase the demand will increase.

Speaker Change: For sure we see that steel project already in line are coming to line and could you brought on Makena.

Speaker Change: So we do not expect such as the ability to continue.

Djaria Traore: So, and if you will refer me over to Mr. Cote d'Ivoire, what we've seen as soon as those issues were being addressed, we've absolutely brought in additional gensets, especially at Lafayette, so much so that we're currently in a position to fully power our mine sites on those generators. Excuse me, Felicity, any further questions? Great, thank you very much. Thank you.

Speaker Change: So and if you will some of it could gigawatt of what we've seen as soon as those issues, where we've been at.

Speaker Change: Address.

Speaker Change: So let's see brought in additional gen sets, especially at La <unk>.

Speaker Change: So that we are currently in a position to fully power our mine site on the <unk> on those generators.

Speaker Change: Excuse me.

Speaker Change: Any further questions. Thank you.

Unknown Executive: Dear speakers, there are no further questions for today. That does conclude our conference for today. Thank you for participating. You may now all disconnect. Have a nice day.

Speaker Change: Dear speakers there are no further questions for today that does conclude our conference for today. Thank you for participating you may now all disconnect have a nice day.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Okay.