Q4 2024 Endeavour Mining plc Earnings Call
Speaker Change: Good day and thank you for standing by. Welcome to Endeavour Mining's fourth quarter, full year 2024 results webcast.
At this time, all participants are in the listening mode.
Speaker Change: After management's presentation, there'll be a question and answer session. For those who wish to ask a question, please dial in to the phone line. Please note that due to time constraints, we will be prioritising questions from covering our analysts.
Speaker Change: Today's conference call has been recorded, and the transcripts of the call will be available on Endeavour's website tomorrow. I'd now like to hand the call over to Endeavour's Vice President of the Investor Relations, Jack Garman.
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Speaker Change: Hello everyone and welcome to Endeavour's Q4 and full year 2024 results webcast.
Before we start, please note our usual disclaimer.
Speaker Change: On the call today, I'm delighted to be joined by Ian Cockerill, Chief Executive Officer, Guy Young, Chief Financial Officer, and Djaria Traore, Executive Vice-President of Operations and ESG.
Speaker Change: 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, the forehanding back to Ian, he's closing the marks
Speaker Change: for then open the line up for questions. With that, I'll now hand over to Ian.
Ian: Thanks very much, Jack, and hello to everyone joining us on the call today.
Ian: I'm proud to say that 2024 was another successful year for Endeavour where we delivered on our strategic priorities.
Ian: We've produced 1.1 million ounces of gold at class-leading or in-sustaining costs of $218 for ounce, while maintaining an industry-leading safety record for it.
Ian: A year-and-year production growth marks a positive turnaround to its production profile and one that we expect to keep building on to the end of this decade.
Ian: A large part of that growth is driven by the successful completion of our organic growth phase last year. The La Sigae mine and Sabadol and the Son of Biox project have increased our production base, improved our portfolio quality and increased our diversification.
Ian: Following this growth phase, we delivered a free cashflow inflection in Q3, generating $97 million.
Ian: which we've now followed up with a record free cash flow of $268 million in Q4, bringing total free cash flow to $365 million in H2 2024.
Ian: And from here, we can certainly expect free catalogue generation to continue building throughout 2025.
Ian: The strong free cash flow generation helped us to quickly deliver our balance sheet to 0.55 times net debt to Abu Dhar at the end of the year and we expect to reach our long term target of less than 0.5 times very soon.
Ian: Given a record free cash flow, low leverage and strong operating outlook, we've declared a record dividends to 2024, as $240 million, which is supplemented with $37 million of share
Ian: That brings our 2024 show the return to a total of $277 million, or a $261 for every ounce of gold that we produced last year.
Ian: During 25 and 26, based on prevailing goal prices, we expect to increase shoulder returns, and as you will have seen, year-to-date we've increased our share-buyback activity by 69% compared to this time last year. We owe the 22 million dollars more back so far.
Ian: All things being equal, we intend to continue with this activity.
Ian: Our exploration program continues to underpin our growth and not only do we increase our group deserves by a third this year, but we also achieved our five-year resource discovery target a year early.
Ian: Adding 12.2 million ounces of measured and indicated resources since 2021 for a discovery cost of less than $25 per ounce.
Ian: Late last year, we completed the Asafu PSS, which defined a potential Tier 1 project that we expect to continue to expand.
Ian: Lastly, I want to highlight our 2024 Sustainability Report, which was published today, which demonstrates our continued commitment to protecting our operating environment.
Ian: Driving socio-economic growth within our host communities and supporting the long-term success of our business and host countries thus creating meaningful value.
Ian: We are pleased that this is what is being recognised by the external rating agencies, and we have achieved an improved 17.3 low-risk rating from sustainable critics.
Ian: And I'm proud to say that we are the best rated goal producer on the Sustainer's 6th platform and we've improved our score every year that we've been rated.
Ian: Entering 2025, we've got strong momentum from the second half of 2024 and we're well positioned with a larger, higher quality and more diversified portfolio.
Ian: We're very pleased with the performance so far this year and we'll build on this focused on maximizing free cash flow generation from every ounce produced to support increased shoulder returns and prepare the business for its next growth phase.
Ian: Moving on to slide 7, you can see that our production increased each quarter in 2024, rising by 34% on 93,000 ounces in Q4 as our growth projects hit-name plate capacity, in addition to a particularly strong performance at Hyundai, which benefited from higher grades.
Ian: In Q4, we also maintained our position as one of the sectors lowest cost producers as are all in sustaining cost decreased by $146 for Amos, primarily due to higher production and lower costs of Hyundai, Maynard, as well as La Figue.
Ian: On slide 8 and looking at the year ahead, as we announced in January , Group Productions forecast to grow by up to 14% year on year, while our all-in sustaining costs are expected to remain stable.
Ian: Sustaining and non-sustaining capital combined increased year over year in 24 due to the addition of the two new growth projects and are slightly above the expected normal run rate due to higher than the average stripping ratios across the portfolio.
Ian: A stable year-over-year all-in sustaining cost profile, positions us as one of the lowest cost producers in the sector, firmly in the lowest cost quartile.
Ian: With a measuring total cash cost, all in sustaining cost or all in cost we continue to rank among the sector's leaders and that's where we intend to stay.
Ian: As I mentioned, during 24, we were pleased to reverse our declining production trend over the last three years on a like for like basis and we're aiming to grow production by up to 14% in 2025
Speaker Change: Dame with Progressive Increases in Production at Sub-Ital in the Sauer, Icki and Lana.
Speaker Change: from 24 levels to about one and a half million ounces. [inaudible]
by 2030.
Speaker Change: Coupled with optimisation and productivity initiatives at our existing assets, we expect to be able to offset cost pressures associated inflation and maintain stable costs to the end of the decade.
Speaker Change: On slide 12, you can see we generated $313 million, a free cash flow in 2024, an increase of approximately $487 million a year over year due to the increase levels of production, reduced growth characteristics, and the higher-up-prevading gold price.
We generated $381 million in H2-24 loan.
and given that we don't...
Speaker Change: Expect to incur any material growth capital over the next six quarters. We anticipate generating stronger free cash flow in 25 and going to 26, or is assuming the goal prices remain supported?
Speaker Change: On slide 13, we show strong free cash flow in the second half of 2024 as we put our phase of
Speaker Change: We've already improved their reached 0.55 times net debt to the long-term medium of adjusted a bit down, and we have a clear line of sight, reducing the further to as or below 0.5 target in the near term.
Guy: Guy will give you further details on our robust financial health across the group shortly.
Guy: On slide 14 and given the strong operational performance, free cash flow generation and financial position at the end of the year, coupled with our strong outlook, we declared a record dividend of $240 million in 2024.
Guy: We supplemented that with an additional $37 million worth of shared buybacks, increasing total pounds to $277 million.
Guy: In 2025, so far, we've already completed $22 million in share by Vax, and that's a 69% increase on the corresponding period last year.
Guy: and given our strong outlook, healthy balance sheet and the prevailing gold price, we expect to continue increasing this activity.
Guy: To put our 2024 returns in context, we return $261 for every ounce we've produced and that's equivalent to a sector-leading indicative yield of just down to 6 percent.
Guy: Over the last four years, since we launched that first Shelly Returns program,
Guy: We returned over 30% of our market cap at the start of the period, which is even more impressive. We inconsiderably simultaneously invested approximately $750 million in our two organic growth projects.
Guy: We track our returns on a per ounce basis to ensure that as we grow the business organically we have preserving our margins and hence our ability to deliver increasingly attractive returns.
Guy: and our dollar-to-ounce return is sector-leading and a world position to increase returns and grow production.
Guy: A key component of our future organic growth is the soften which we've seen here on the following slide.
We would delight it with the results of the PSS.
Guy: A study late last year, which outlined a 330,000 ounce per year project at an all-in-sustaining cost below $900 an ounce over its first ten years of production and having an initial 15-year mile-in life.
Guy: A soft boom boasts really attractive economics, including a $2.5 billion NPV and a robust 40% IRR, a $2.5 billion dollars per ounce gold price.
Guy: We continue to explore in close proximity to the project where we expect that we will add additional resources in the near term.
Guy: The DSF's component in process is tracking well for completion between late 25th and early 26th.
Guy: On slide 17, you can see that with 2.2 million ounces of measured and indicated resource discovered in 2024, we are pleased to achieve a 12-17 million ounce
Guy: 5-year discovery target a year early, discovering 12.9 million ounces since 2021, for less than $25 per ounce.
Guy: I think this underscores our ability to not only sustain our operations, but to extend my lies and add new greenfield projects, such like Asafu.
Guy: For 2025, we've committed $75 million to exploration and we'll focus our exploration efforts on near-mind opportunities at our core operations, as well as continued exploration at the Saafu and the targets in close proximity to the Saafu.
Guy: On slide 19, you can see some of the highlights from our 2024 Sustainability Report, which we also published today.
Guy: On the environmental side, we achieved a sector-leading low emission intensity of 0.63 tonnes of CO2 equivalent to ounce produced.
Guy: and we expect to continue to improve our emissions as we recently commissioned a Salvadoral
Guy: On the social side, we continue to be at Pulitzer Economic Growth in our host countries, delivering $2.2 billion in economic contribution and spending $1.4 billion on in-country suppliers.
Guy: On the governance side, I'm happy to declare that we've achieved ISO 45001 and ISO 14001 certification now at all of our sites.
Guy: A continued improvement is being recognised by the Climate Scotiate, a Disclosure Project, who've given us an improved B rating and sustained analytics who've given us a low risk rating of 17.3, positioning us as the best rated gold mining company on their, on their books.
Guy: And now, with that introduction, let me hand you over to Guy. We'll take you through the details of the financial results. Guy, over to you. Thanks Ian. I'd like to walk you through our financial results for the quarter.
Guy: As Ian mentioned, we delivered our strongest quarter of operational performance in Q4. This, along with a strong gold price, drove record EBITDA and significantly stronger cash flows.
Guy: We look at slide 22, you can see the significant increase in our adjusted EBITAR generation, which increased 72% in Q4 due to higher production, at lower costs and higher realised gold prices
Guy: Importantly, Arriba Dal Margin grew by 13 percentage points as our cost improvement was coupled with an approximate $250 per ounce increase in realised gold prices.
Guy: The stronger quarterly EBITDA coupled with seasonally low taxes led to significant improvement in our operating cash flow as you can see on slide 23.
Guy: We generated $381 million in operating cash flow, which if you adjust for the one-off $150 million pre-payment settlement would be $531 million.
A 100-needlems send improvement, quarter on quarter . . .
Guy: This really underscores the strong operating cash flow that the business can generate from a higher production base, following the completion of the growth projects and in this gold price
Guy: Soni, Slide 24, the breakdown of the increase in operating cash flows is as follows
Guy: The real-life gold price, inclusive of real-life losses on gold hedges, increased by $248 per ounce in Q4, contributing to an $88 million increase in operating cash flow over Q3.
Guy: Additionally, gold sold from continuing operations increased by 76,000 answers to 356,000 answers in Q4, driving an additional $178 million in operating cash flows.
Guy: These increases were partially offset by an increase in operating in other expenses of $202 million, reflecting both higher royalties from increased gold sales and prices, as well as an increase in mining and processing costs following the ramp up of the two gross projects.
Guy: Income Tax is paid decreased by $48 million to $17 million mainly due to the timing of income tax payments of itty and the timing of withholding tax payments across the group which typically occur in Q2 and Q3.
Guy: Lastly, the decrease in working capital inflow was driven by an increase in trade payables, an art flow and trade receivables and partially offset by an art flow of inventories prepaid expenses
Guy: Altogether, we delivered $126 million in additional operating cash flow quarter on quarter.
Guy: Following the completion of our growth phase in Q3, our free cash flow generation increased significantly. We generated a quarterly record of $268 million of free cash flow.
Guy: which, if adjusted for the one-off prepayment, is equivalent to $418 million dollars of free cash rent.
Again, this highlights the free track.
Guy: Free Castro Generation capacity of our improved portfolio. We've now delivered on the free Castro inflection, and we expect to continue to generate strong, positive free Castro to support our de-leveraging and increased shareholder returns.
Guy: On slide 26, you can see that given the strong cash flow generation, we decreased our net debt position by more than $100 million in Q4, $732 million, and we reduced our leverage to 0.55 times net debt to adjust the EBITDA.
Guy: We've quickly delivered from the peak of 0.81 times to 0.55 times in six months, and we expect to achieve our leverage target of 0.5 times within the next few months.
Guy: positioning our balance sheet well to enable us to deliver a tract of shelter returns, not just in the next few years, but through the yourself of construction phase as well.
Guy: Walking through the change in net debt, operating activities generated $352 million in operating cash flow for four changes in the working capital, along with $25 million of working capital
Guy: Investing activities included $43 million in sustaining capital, $59 million in non-staining capital and $24 million in growth capital, which are partially offset by $15 million in proceeds from the disposal of Bungo Nguyen-Yong.
Guy: We received a further $10 million after quarter end, with now the remaining $10 million outstanding that's expected to be received in the near term.
Guy: Finally, financing activities included $100 million in dividends paid to shareholders, and $52 million in financing fee payments, minority dividend payments of $7 million and share $5 million among some other items.
Guy: Moving lastly to our net earnings from continuing operations, as shown on slide 27, our adjusted net earnings increased 50% quarter over quarter to 45 cents per share in Q4.
Guy: I'd like to walk through a few key items on the income statement.
Guy: The group recognised a $200 million non-cash impairment related primarily to the Kalana property in Mali as we deprioritise the development of a large scale project in Mali as well as the Golden Hill Permit in Bikina Fasa where the permit remains under renewal. [inaudible]
Guy: Games on financial instruments in Q424 were driven by an unrealised gain of $35 million on our gold collars and forward sales due to the timing around Mark to Mark at amongst other items, which were partially offset by a realised loss of $10 million on gold collars and forward sales.
Guy: Increased current income tax expense of 109 million in Q4 was largely due to the recognition of increased tax expenses due to higher taxable earnings at the operating site level.
Guy: The lastly deferring contacts expensed $93 million in the fourth quarter results primarily from increased withholding taxes expected in 2025.
Guy: and this is associated with expert dividends at higher gold prices and foreign exchange losses from the re-evaluation of deferred taxes carried forward from 2023.
Guy: We have included a slide on the appendix showing expected cash tax payments for 25 and by quarter, which although subject to some assumptions provides an indication of expected timings of payments for the year 2025.
Guy: With that I'd like to end over to Djaria to walk you through our operating performance. Thank you, Guy. Starting with our continuous strong 50 performance.
We had zero lost time injury in quarter-four.
Guy: However, our trailing load-time injury frequency rate increased slightly due decrease in total hours' work as a resource of ramping down construction activities.
Looking at the four-year 2024 2004
Guy: Our last time in your frequency rate stands at 0.13, which is significantly lower than the industry average of 1.12.
Guy: This continuous safety performance is a statement to our strong safety culture, but we recognize as always more we can do, and our goal is to eliminate all serious injuries and incidents.
Guy: Flight 13, the four-year 2025 exploration program was primarily focused on resource-to-reserve conversion across the group as it sings operations.
as well as the highly perspective of self-deposite. [inaudible]
Guy: This was largely due to critics, the maiden reserve at a saffoon of 52% increase or 1.2 million ounces at ET, which is due to the model optimizations of the ET Donuts.
Guy: and Third, the gold, the increased gold price assumptions from 1,300 to 1,500 per ounce.
Guy: In simple terms, the group reserve increase represents about three times our new production depletion and highlighted the high prospectivity of the region.
Guy: Results decreased slightly by 2% as the increase at ET, and the change in Results Gold price assumptions from 1500 to 1900 per ounce.
Guy: was largely offset by depletion and the removal of Golden Hill near Hyundai, where the permits is pending renewal, as well as for Bury, near Mana, where we have given up the permits due to lower prospectivity.
Guy: For 2025, our exploration program will prioritize near-mind resources to support and improve our mind-blends.
Guy: On slide 31, you can see an overview of our portfolio, recent and forecasted performance.
Guy: As Ian mentioned earlier, given the new project in 2024, we reversed the portfolio production decline, adding high quality ounces and increasing our diversification.
Guy: This year, we expect to grow production at Sabadola Masawa, La Figue en Mana.
Wind slide decrease from report levels at EC and wounded
Guy: On cost, we expect lower total cash costs, benefiting from improved power costs and increased production. All in the standing costs, I expect you to be stable across.
Now, Turning to Mind by Mind Performance
Starting with Sabadola Masawa on slide 32.
2024 was a challenging year at Sabodalam-a-Sawa
Guy: due to low availability of high quality ore for the CIO grant.
Empathy Recovery and Great
Guy: For this was also coupled with mining and processing of more transitional refractory ore during the Viac's ramp up, which has also impacted the recovery.
Guy: We will please, however, to deliver a 30% reduction increase in Q4. That's mind great increase in both non-refacterial and refractory ore.
Guy: This was partially offset by lower recovery at both plants, largely due to plant shutdown for the connections of the solar plants to the side-grade.
Looking ahead to 2025.
Guy: Giving the increased focus on grid control drilling last year and the acceleration of mining through the transitional zone at Masawa Central, we have significantly increased confidence in the outlook.
Guy: We expect to increase production by up to 22% as the bio-planned delivers of full production and length plate capacity, a recovery rate increased in both plants.
At the same time, we are advancing our technical review.
Guy: And this includes quantify the high-grade non-refatory oxide target that we have identified and to be incorporated into our near-term mine plan, an increasing throughput of the bioxplent by 10 to 15 percent.
Food Productivity Improvement, and also plant optimizations
Guy: We expect to have better visibility by mid-year and also to start incorporating some of these
Guy: Longer term, we expect a group production of 250,000 ounces by year 2027.
Guy: As we continue to increase throughput in the bi-explant and also aim to increase grades in the CIL plant with the acceleration of the Gueloma and Caraconda on the ground deposits into
Like 33 would own day.
Guy: quarter four was an ascend out performance at one day, as we mine and process High Grid Orr from the Carey Pumped Pit.
Guy: Driving a significant 47% increase in production, quarter and quarter, which was aligned with the mind plan.
Guy: Meanwhile, all in a certain cost decline, benefiting from the higher grades and significantly higher volume of gold sold.
Guy: Looking ahead to 2025, in the first quarter, we have continued to mine and process high-grade
Guy: We do expect this high grade to moderate through the year, resulting in lower year-on-year production, but stable on in-sustaining cost.
Now moving to eat it, on slide 34 .
Where we deliver a record production again in 2024.
Guy: Since we build the CIS plant in 2018, we have been able to grow gold production every year through plant optimizations that have been underpinned by our exploration success.
A true testament to our approach to operational excellence [inaudible]
Guy: All in-sustaining costs rose slightly due to higher mining units cost.
for 2025.
Guy: It is expected to moderate production due to slightly lower grades in the mind plan.
Guy: with all interest and in cost, increasing slightly due to increased capitalized tripping and the mine sequence.
Tomorrow, as you can sleep on flight 34-35
Minus production increased by over 30% from quarter three to quarter four.
Guy: which is driven by significant improvement in grades and throughput as the development rate and stopping activity increase in quarter form.
All in sustain and cause decreased.
Since we started the on-the-grown expansion at Mining 2023,
Guy: We have successfully grown production year-on-year, and we expect the same in 2025, now that we have access to high grid on the ground stops,
All in-sustaining calls are expected to decrease your year.
Guy: But we still have work to do. We're focused on improving underground mining rates and optimizing our contractual relationships to help improve efficiencies.
Guy: Finally, turning to our fifth and newest mine, La Figaine Site 36.
Guy: We were delighted to achieve commercial production on August 1, 2024 and we've been rapidly ramping up
Guy: Since then, achieving an inflate capacity during quarter-three-flash-three . . .
Guy: Outside of on schedule maintenance in quarter four, we were five percent above nameplate capacity, which demonstrating again the potential for even stronger throughput going forward.
Looking ahead to 2025.
Guy: We expect production at La Figue to increase significantly as the result of a four-year production, while all in sustaining costs are expected to increase slightly in line without mind line.
Guy: This concludes my operating review, and I would hand back to Ian for his closing remarks.
Ian: Thanks very much, Djaria. Now, it's clear that we're bringing strong momentum from the second half of 2024 into 2025. The group's performance has been very strong so far in this current year.
Speaker Change: Before we open the lines of questions, I just wanted to highlight the strong value creation proposition of our business on a parallel basis.
Speaker Change: Over the last ten years we've added over 21 million ounces of measured and indicated resource at less than 25 dollars an ounce and that includes the two cornstone greenfield discoveries
Speaker Change: This high-quality organic growth underpins our class leading margins, we realized a significant all-in-staining margin of...
Speaker Change: $1,131 per ounce, which has helped to drive significant free cash flows for the group in sip-ass as 24.
Speaker Change: As we organically grow production and maintain stable costs, we expect to generate even more value for shareholders in the year ahead.
Speaker Change: And with that, let me conclude and let me know from the line for any questions.
Speaker Change: Thank you. To ask a question during the session you will need to press star 1, 1 on your telephone keypad and wait for your name to be announced. To withdraw your question, please press star 1, 1 again.
We will now take our first question. Please stand by.
Speaker Change: And the first question comes in the line of Richard Hatch from Behrenberg. Please go ahead, your line is not open. Thanks very much, team. Much appreciated and congrats for a good set of numbers and the free cash flow. That's really good to see. I've got a few questions. The first one is just on the shareholder returns. Ian Guy.
That's the first one, please.
Yep.
Richard, I mean...
Speaker Change: I think you already know that this year we've already sort of pre-declared what I call the press dividend, the press cash dividend of 225 million dollars.
Speaker Change: Then we have the additional potential for the supplemental cash as well as buybacks. I think what the market should expect that this year particularly bearing in mind are strong performance as well as...
Speaker Change: as everything else, that the accelerated rate of buybacks gives you an indication that we are, you know...
very much in favor of buybacks.
Speaker Change: We will do that on the basis that we see that it's...
Speaker Change: satisfies our return criteria that we've always had. It forms part of the general capital management of the group, but...
Speaker Change: I think the indication that we've already given of an increase...
Rates of buybacks.
Speaker Change: Already in this year is likely to continue for some time.
Speaker Change: In terms of definitively talking about what will happen, that will come out of any board discussion that we have in the middle of the year, so too early to give anything definitive for the middle of the year.
Speaker Change: Okay, helpful. Thank you. Second one, Guy, thanks so much for the tax guidance, the cash tax guidance, super helpful. Just a question. I know you're running it at $2,600 gold, obviously the gold price is $2,900. So if you've got a sensitivity by any chances to what?
Speaker Change: What that cash tax could look like if we move the 2,900 just better also bearing in mind, I guess there's a bit of forward payment, right?
Speaker Change: So, the piece that you're focusing on, I think, is the important one that is the corporate income tax in the...
Speaker Change: Numbers that we've provided are effectively fixed because they are 24 tax.
Speaker Change: that is expected to be paid into 2025. The variable portion is that withholding tax piece which in the appendix you would have seen we've estimated is 80 to 90. You could be adding around 10 million.
to that withholding tax for every $200.00 an hour.
What I would just suggest is...
Speaker Change: Do not allow it to flow through too quickly because we do this not just from a gold price perspective but we're also looking at cash balances on site and there is a fairly significant lead time between our planning for these dividends, getting it through local boards and AGMs.
Speaker Change: and having them approved before fully remitting. So, the likelihood of these moving inline gold prices is...
Speaker Change: is not should not be should not be anticipated that the most likely scenarios we're going to be in and around the numbers that we've provided you already.
Okay, she's, she's helpful. Thanks. And...
Speaker Change: Two more, sorry, one's just for Djaria. Djaria, you'd mention about getting Sabadal and Mathawa back up to 350, which is, I don't think in that money of the market's models. Can you just help us with just a couple of points on that? Is that running, you know, the bike's at 1.2 at 5 grams? Is it the CIL at, you know, 4.6 million tons that, you know, anywhere between one and a half to two grams? Is that how we should kind of be thinking about it? [inaudible]
Speaker Change: Thank you, Richard, for the question. Obviously, I think that's what we discussed when we were in side-by-side, so there are a few issues that we were looking at. But really, the tool one is important more than currently focusing on is really increasing the throughput through the buyer's plant.
Speaker Change: That's the first one that we're going to be focusing on.
Speaker Change: The other thing that we realized is here, as you see when we're on site, we're not mining for the transition.
Speaker Change: in Masala Central Zone. So in terms of grade and recovery, we are much better placed than we would work for.
Speaker Change: and for the non-refatory, now we do have some options that we also, we could be coming in line 2025.
Speaker Change: So the guidance that was put out there was pretty comfortable with it, all the different initiatives would only just come, I don't know if it's right to the numbers.
Speaker Change: Okay, very clear, and sorry, last one, I have to ask it just on manner.
Speaker Change: Midpoint of your group range. So, what is the long-term achievable target here and or does this mind still deserve to be in the group? I suspect the answer is yes, but it's just an update on your thoughts on mana.
Speaker Change: Again, thank you. Of your share, we, as I mentioned in my-
Speaker Change: Unknown Speaker I'm I'm Unknown Speaker so um Unknown Speaker I was going to the Unknown Speaker also Unknown Speaker But, you know, Unknown Speaker that Unknown Speaker I'm Unknown Speaker open Unknown Speaker to know about science and Ultimately, before Philanthropy is something can
Speaker Change: We talked to you earlier, we do have some work to do at Nukat Manam.
Speaker Change: We do have some initiatives that definitely we're looking at. One of them, as we mentioned earlier, is really to work very closely with our contractor on site. Now we're getting in and going whereby we can select one. So the few efficient initiatives that we're looking at. [inaudible]
Speaker Change: One of them is of course to look at how the current Ovais designer will have which way we design it. That's one initiative that should help us to bring our cost down.
Speaker Change: We're also looking at automation of the plant with the Sunabelle and Caterpillar Labnetwork that as well we bring some really needed improvement in the current cost.
Speaker Change: But I think above all, it's really into our mining plan. As we said on last time, we've done a lot of development last year. We're not comfortable with the access of higher bread into our stock. And that's definitely what's helping to bring it out, goes down as well. Thank you very much.
Okay, very helpful. Thank you, team. Congrats.
Speaker Change: Thank you. We will now go to our next question. Please stand by.
Speaker Change: and the next question comes from the line of Ovais Habib from Scotia Bank. Please go ahead, and let your letters out open.
Ubaid Habib: Thanks operator, Hayin and Endeavour team, congrats on a solid Q4.
Ubaid Habib: really great to see the pre-cashable coming in, you know, that was almost 270 million pre-cashable and Q4, so congrats on that.
Just a couple of questions for me.
Ubaid Habib: Maybe start off with Sabodala. You know, again, when we were there at sight, you know, you were talking about, you know, really, you know, looking for additional non-refractory kind of resources. I think we've talked about Mamasato, Seketo.
Speaker Change: Thank you for watching. Copyright © 2020, New Thinking Allowed Foundation All rights reserved.
Speaker Change: Thank you for this. Good to hear you. Yes, I think it's some of the target that we've
Speaker Change: which is now being modeled to reserve. So we just have some good results in the coming, coming on your turn.
Speaker Change: The other deposit that definitely I'm not for you, if we've discussed it when we're on Fidesys, is that around Tesla's seat.
Speaker Change: where we now start mining again. I think we started last year, then we started. Thanks.
and the KSFC will come in line in this March. [inaudible]
Speaker Change: and that throughout the rest of the year, and those two are really non-refactually higher grades starting to put into the CIA plant.
Speaker Change: Thanks, Jaria. Thanks for the color on that. And then just kind of sticking to that, you know, I mean you, we also talked about the Luma, that was more the underground target, I think there was Kerakonda, and you know, in terms of, you know, bringing those into the mind plan, I think in 2026, is there an opportunity to bring those forward as well, or should we just stick to them as more 2026?
Speaker Change: Yes, so we're still on Kuloma, from Recunda. We are in the phase of scoping.
Speaker Change: I think currently what we're looking at is the end of 2026 so that you can start having an impact.
Speaker Change: What really is really going to be around 2027, but anywhere that we can pass track the wall, pass track with a team, but currently realistically, we are not looking at at least until then of 2026.
Speaker Change: Okay, thanks for that. And just congrats on the Sapatara team on commissioning their solar plant. What are you expecting in terms of kind of per ounce savings on the cost from the solar plant? I'm guessing most of those will kick in, you know, those savings will start kicking in in the second half.
Speaker Change: Yes, so as you know we started the commission, commissioning late last year.
Speaker Change: It is really well progressing, we are almost at the end of it, but we are already injecting from power into the grid which is really fantastic.
Speaker Change: In terms of cost, we plan about 20 to 30% reduction on...
Power of Cost.
Speaker Change: I'm sure we can get back to you exactly, Jack will be back to you on what that's translated into impacts on our audience.
Speaker Change: Sounds good. And just maybe moving on to Asafo. Again, the cutoff for the PFS in terms of drilling was I believe somewhere in October 2023. 70,000 meters have been drilled since then. You're looking to drill about 120,000 meters in 2025.
Speaker Change: You know, are those 120,000 meters, you know, step-out running, is it more contra-metry-driven, you know, any color on that would be helpful as well.
and so on.
Speaker Change: They see, you're quite right, the cutoff date for the study was at the end of 23.
Speaker Change: The additional drilling that has been done postnat cutoff period, some of it was...
Speaker Change: You will recall last year we did actually increase the Strightland.
Speaker Change: of the pit by about 30 percent. And then, clean to this year, a lot of the drilling is we're going to do a reasonably close
Spacet,
Speaker Change: of Mining the Pit just to give us a little bit more confidence just to the early stages, fairly quite critical. So that's the general sense of what we're trying to achieve there.
Speaker Change: Okay, thanks for that. And I'm guessing we're just going to get results on that or are we going to be one kind of comprehensive release at the end of the year?
Speaker Change: Yeah, look, I mean, the intention, once we, you know, we do the study.
on the answers that we've already defined.
and but in Carwell to the release of the definitive...
Speaker Change: Feasibility Study. We will produce an updated resource statement, so you can see that side by side. So, you will see the impact of the additional drilling, although it may not be included in the DSF study.
Speaker Change: principally because, you know, at 4.1 million tonnes already, there's more than enough.
For Us
to define the right size of the plant.
and also the PLAND. [inaudible]
is being...
designed and configured in such a way that...
We will...
Anticipate.
Speaker Change: A potential increase in its capacity over its life and will build it and design it in such a way that expansion is relatively straightforward and we're not going to be unduly confined in our abilities, make that to expansion quite successfully. [inaudible]
Speaker Change: Thanks for that, Collarion, and this last question for me, I promise, you know, at IT, you know, we've been, you know, you guys started talking about the IT Donut concept, you know, Q4 was...
Speaker Change: You know, kind of focused on that front. It's already starting to show potential to kind of increase my life. When are, or are you looking to release any sort of update on, on the mind plan incorporating the, if you don't [inaudible]
Yeah, look, I mean.
Speaker Change: We've clearly defined that we don't have discrete law plots, we have continuous...
Thank you.
Speaker Change: We've got a much better handle on that now, hence the concept to be if you don't [inaudible]
Speaker Change: Throughout this year, you know, we'll be busy specifically with a study that says, right, what's the best way to exploit this doughnut? You know, you know that the itty site is a fairly constrained site so the logistics of dumping waste and what have you, it's not quite a straight border that would be perhaps on a more open site.
Speaker Change: but that study will take place this year and once we've completed that then obviously we'll be publishing it.
Speaker Change: Okay, thanks for that. That's all for me and congrats on your support.
Speaker Change: Thank you. Thank you. We will now go to our next question.
Please stand by.
Speaker Change: and the next question comes from Alan Gabriel from organ Stanley. Please go ahead, your hands are open.
Alan Gabriel: Can you give us an update on your conversations with the government? If it's developing in line with what you've expected or if there's any potential surprises there and then on Senegal, how should we think about any conversations you may have with the government on and your mining tax codes? Thank you
Dr. Paret, Dr. Paret
Tyler. At this stage we continue to have...
reasonably good interactions with both Senegalese and the Côte d'Avoire.
Government,
Our primary contact remains through the Chamber of Mines.
Alan Gabriel: We think that that is not just appropriate, that's what the government is expecting and it helps them to understand where we are as producers and the likely impact of any changes in those codes to our business and probably more importantly in terms of our aptitude for future investment.
Alan Gabriel: Post Nations are looking to try and establish revised sets of profit sharing, so the inevitable pressure is always going to be against us.
However, having said that [inaudible]
Alan Gabriel: Because our interactions have been relatively positive we do believe that we are being listened to In each of the jurisdictions we do have stabilization clauses that are part and parcel of that conversation
Alan Gabriel: At this point in time, we do not have a clear idea as to when any of the changes may be enacted but we don't see it being in the very short term. At this stage, we continue to have those conversations and engagement remains positive.
Thank you very much, thank you [inaudible]
Alan Gabriel: Thank you. We will now take our next question. Please stand by.
Speaker Change: The next question comes to the line of Ian Russo from Barclays, please go ahead, John is not open.
Ian Rousseau: Hi, everyone. A couple of questions from you. Firstly, just on Subadalam-Azawa, C.U. mentioned the drop-in recovery at both the Biogs and CLL plant.
Ian Rousseau: Sounds like some of that was related to the solar tie-ins, could you give us a sense what we should expect over the course of 25, sort of a quarterly progression.
Ian Rousseau: Overall production profile and cost profile was very skewed to the second half and much lower cost. Just trying to get a sense how should we expect that for 25 for Sabodalam Asawa but maybe overall over the windows seems like you're starting with high grades and then that's kind of fall over the course of the year. [inaudible] how to get a sense
Thank you.
Ian Rousseau: Thank you, Ian, for the question. Obviously, for Salvador, I think without, for the buy-ups, what we plan is starting around the seven-tip center, the beginning of the year.
Ian Rousseau: and then throughout the year, really ramping up. But if you look at the full year average, we are over being the mid 75 to 76% are we expecting from the buy-offs.
Ian Rousseau: As for the whole village plant, which we call the CIA plant, we are on the range of 80, 85 percent, so that's really for several dollars.
Ian Rousseau: The question around whom this is planned, so the high grade that you refer to is really from Carey Pom. This is how we plan it, so that we will finish Mining Carey Pom by the end of this quarter, early 42.
Ian Rousseau: We are doing additional growth for drilling within the curry pump.
Ian Rousseau: We expect in the results to be coming in as well by mid 42.
Ian Rousseau: If we have some positive wonder, we'll continue many day. Carey pump has been great. I mean, we can complain. So the drop that you've mentioned, it is planned at ease.
Ian Rousseau: It will be retrieved by Carey West. No Carey West is double in half that super high grid that we've seen at Carey Park. But we're pretty comfortable with the mining channel and Carey West as well.
Speaker Change: Thanks, maybe just to follow, I mean, in terms of the overall production, what should we get a sense for the split first half taken off?
for the group.
Speaker Change: So for the group, we have, in each one I think, the way we have planned it so far is pretty stable.
Speaker Change: We are talking about 300, quarter and quarter, which will then bring us to what we play now there as a guidance. So if you then need to combine four to two, so you can have 600 ounces per bridge.
Speaker Change: Okay, perfect. And then just the final question, just on Asal Foo, just to follow up on the previous question around additional drilling and the DFSU looking to finish this year or early next year.
Speaker Change: If you will find a lot more resources than from the site visit that was quite clear, I mean, where do you, I guess?
www.youtube.com.au
Speaker Change: At what stage do you decide to increase the size of the plant? You mentioned in response to the earlier question that you will look to expand the plant over time, which is from a mining perspective. The thinking is always bigger is better, but obviously that then there will be a much higher capex core up front. So just trying to get a sense of how you think about that and what's the risk of that sort of 734 capex going up a lot more initially. That's what you're going to do. You're going to get a sense of how you're going to get a sense of how you're going to get a sense of how you're going to do that.
Speaker Change: Yeah, great, great question. Obviously a pre feasibility study is the time when you look at the what is.
Speaker Change: and you look at various sizes and based upon the resource pipeline that we had then, we looked at various...
Speaker Change: sizes, you know, anywhere between sort of four and eight million tons per year and what are the implications of that.
and what was the...
Speaker Change: which profile or which level of throughput do we believe we had the greatest confidence in being able to have to the sustainable...
and Unknown Speaker 0.0.0.
Traditionally in our group, we have always.
and we...
Seventy-Fine Outsells
Speaker Change: that the degree of latitude that we have in our designs, but not sort of untypical. Looking at it, looking at the various options that we had, looking at the
Speaker Change: The state of confidence in satellite deposits that could add to the production base.
Speaker Change: My gut feel tells me at the moment that we'll stick at around the five million tonne.
It seems to be the best option for us.
to design off.
The Satellite Deposits
Speaker Change: and I would see them forming part of the natural organic increase that would take place over the first three to five years of that plant. Once we get used to operating it, we will squeeze it and we will take it further.
Speaker Change: What's the probability of going outside of the 5 million tonne, current proposed capacity for Asafo? I would say it's actually quite low. I think you can be reasonably comfortable that is the size of plant that we will be going with.
Okay, great. Thank you.
Thank you.
We will now take our next question. Please stand by.
Speaker Change: and the next question comes from Anita Soni from CIBC. Please go ahead, join us now, open.
Anita Soni: Good morning, everyone. Thanks for taking my questions. I'm going to drill down a little bit more on to Sabha Dola Masala. I just wanted to understand
Speaker Change: You said, I think, Djaria, you said it was about 75 to 76% recovery rates expected on average for this year in the biomes.
Speaker Change: Can you tell us, you know, with like the quarter nearly complete, what are you averaging in recovery rates right now? I'm assuming at this point the solar tie-in is all complete and it should be running.
Speaker Change: It should be running without any starts and stops at this point.
Speaker Change: Thank you for that question. Yes, so just to confirm and clarify it, that's exactly what I said.
Speaker Change: But in average, for the four years, we're talking about 70 types of things [inaudible]
Speaker Change: So, if we looked at what we've seen so far this year, it's actually what we've learned, which is that low 70, but we've seen month and month improvement into that which is again exactly as we've learned it. So, the 70 type to send average, I was putting for the year, we're pretty comfortable with that. [inaudible]
Yes, and you are near the group. Yes.
Speaker Change: Sorry, you said I just wanted to clarify, you said low set, you're currently low 70s right now.
Correct, absolutely, as it's planned.
Speaker Change: Because again, it's to start it and then to run towards the end of the year. So what we are within the 17th currently is to plan it.
and then how you can do that.
evolving in 2026 as well.
We mentioned.
Speaker Change: Again, it will, it will improve year and year. We expect 2026 to be in the 80s and then it will improve as we go.
Speaker Change: Ultimately, are you going to hit that 87.7 recovery rate? Is that still the target?
This is how I get it, is the goal. [inaudible]
Speaker Change: All right, and then can we just talk about the grades from the biox? I think, you know, I'm just looking back at the technical report and I'm not sure how applicable that is, but it was supposed to be, you know, well more of about seven, like in the seven gram per ton material range this year. Is that not the case anymore or is that is up and modified? I think you just delivered four gram per ton material in the past quarter. [inaudible]
Speaker Change: Yes, I believe you are returned for this to the GSF, where we used to use it on seven grums. No, we're not via the seven grums and I think we've already talked about that.
Speaker Change: last year, last quarter, that technically it will be difficult for us to be around that seven month round. I was aware we've seen it in improvement quarter and quarter from where we were last year to where we are today.
Speaker Change: issue we've brought back to you on the quarter-fourth last show, 43, with experiencing the mining around the transitional zone, the Chinese zone which we presented. We've already mined through that, we're now currently in about 70% fresh.
Good fresh when we sing an increase in the recovery.
Speaker Change: The great, however, as I mentioned, we will not be around the 7th round, what we will do.
Speaker Change: is going to increase it quarter on quarter. I've mentioned earlier that we are restarting the technical review.
Speaker Change: We will have some good results by mid-year, which we will also be sharing that summer stay available with AV-7 Group, probably not. Are we doing everything possible to have good grades absolutely that's what we're doing?
but we're not near the seven ground.
Speaker Change: Yeah, still, thank you. And then just moving to the CIL and I'm just trying to understand the evolution of the two components as we go into 2026. I mean, obviously the guide that we for 2025 was lower than what was previously anticipated.
Speaker Change: and I'm just trying to, I get the 2027-350 that you're targeting, but I'm just trying to understand what 2026 looks like at the stage.
Speaker Change: We are also below on recovery rates, you guys are targeting higher grade or higher quality or what would be the recovery rates if you were, what's your best case scenario on recovery rates at the CIL in 2026?
Okay. That's up to my question. Thank you.
Thank you.
Speaker Change: Thank you. Who will I take on next question? Please stand by.
Speaker Change: And the next question comes from Felicity Robson from Bank of America, please go ahead, join us out open.
Felicity Robson: Thank you for taking my question. You have a resource discovery program target until 2025. Can you give us some color and where your focus lies this year in adding resources? And will the focus change looking towards the more medium term?
Speaker Change: Felicity, thanks. I think as I've said in the talk, you know, the main focus is going to be in and around.
Speaker Change: The existing mind with a particular emphasis around the saucy, you know, this is called the area that we, at the moment see, has got the greatest.
Speaker Change: Level of Prospectivity. That, you know, for us, it's very important.
Speaker Change: Also, you know, we're going to start seeing over the next few years an increased focus on existing
Speaker Change: Reserve expansion, you know, conversion from resource to, to reserves. So in terms of green
Speaker Change: You know, it is predominantly will be in and around Kilte d'Ivoire, that's where the main focus will be. Obviously, Savadalo, we think there's lots of potential around an area.
and particularly, indeed, the 7th Gaussion of the...
Speaker Change: is the mining permit, but predominantly around existing mines, because we think that will be got the moment the highest probability success.
Okay, thank you [inaudible]
Thank you.
Speaker Change: As there are no further questions, I would like to hand back to Jack Garman for any closing remarks.
Thank you very much everyone for listening.
Thank you.
Speaker Change: Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.