Q2 2025 First Quantum Minerals Ltd Earnings Call

Operator: Q2 2025 Results Conference Call. All lines have been placed on mute to prevent any background noise. Today's conference is being recorded.

Hello and welcome to the first Quantum minerals Q2 2025 results conference call all lines have been placed on mute to prevent any background noise.

Operator: After the speaker's remarks, there will be a question-and-answer session, and if you would like to ask a question during this time, please press star 1 on your telephone keypad.

Today's conference is being recorded.

Bonita To: I would now like to turn the conference over to Bonita To, Director of Investor Relations. You may begin. Thank you, Operator, and thank you, everyone, for joining us today to discuss our second quarter results.

After the speaker's remarks, there will be a question and answer session. And if you would like to ask a question during this time, please press star 1 on your telephone keypad,

Speaker Change: I would now like to turn the conference over to Bonita toe director of investor relations. You may begin.

Bonita To: During the call, we will be making forward-looking statements, and as such, I encourage you to read the cautionary notes that accompany this presentation, our MD&A, and the related news release. As a reminder, the presentation is available on our website and that all dollar references are in U.S. dollars unless otherwise noted.

Bonita Toe: Thank you, operator. And thank you everyone for joining us today to discuss our second quarter results. During the call. We will be making forward-looking statements and as such I encourage you to read the cautionary notes at a company that's presentation, our mdna and the related news release.

Bonita To: On today's call are Tristan Pascall, our Chief Executive Officer, Ryan MacWilliam, our Chief Financial Officer, and Rudi Badenhorst, our Chief Operating Officer. And with that, I will turn the call over to Tristan for opening remarks.

Bonita Toe: As a reminder, the presentation is available on our website and that all dollar references are in US Dollars. Unless otherwise noted

Speaker Change: on today's call or Tristan Pascal, our chief executive officer Ryan, megill our Chief Financial Officer and Rudy Bannon horse, our chief operating officer. And with that, I will turn the call over to Tristan for opening remarks.

Tristan Pascall: Thank you, Bonita.

Tristan Pascall: And thank you everybody for joining us today for our quarterly earnings update. At the beginning of the year, we set forth our key priorities for 2025. Moving towards resolution in Panama, ongoing proactive management of our balance sheet and liquidity position, safe and productive operational performance, and the delivery of the S3 expansion project at Consanche. I'm pleased that we have made meaningful progress in these priorities during the second quarter. At Cobra Panama, the Government of Panama approves the Preservation and Safe Management Program, which is an important step forward in our ongoing responsible environmental stewardship of the mine.

Tristan Pascal: Thank you, Bonita.

Tristan Pascal: And thank you everybody, for joining us today for our quarterly earnings update.

At the beginning of the year, we set forth our key priorities for 2025.

Tristan Pascal: Moving towards resolution in Panama ongoing ProActive Management of our balance sheet and liquidity position.

Tristan Pascal: Safe and productive operational performance. And the delivery of the S3 Expansion Project at consanti

Tristan Pascal: I'm pleased that we have made meaningful progress in these priorities during the second quarter.

Tristan Pascall: At the Consange S3 expansion project, we fed first ore into the comminution circuit at the end of the second quarter, and the project remains on budget and on schedule. As we near completion, cash spending is expected to decline as we have now passed the peak of capital expenditure on S3.

Tristan Pascal: At Cobra Panama the government of Panama approved. The preservation and safe Management program which is an important step forward in our ongoing, responsible environmental stewardship for the mine.

Tristan Pascal: At the consanti S3, Expansion Project we fed first or into the commission circuit. At the end of the second quarter, and the project remains on budget and on schedule,

Tristan Pascal: As we near completion cash spending is expected to decline as we have now passed the peak of capital expenditure on S3.

Tristan Pascall: Whilst our copper production was lower quarter over quarter at our Zambian operations, production is expected to be stronger in the second half of the year and we remain on track to achieve our 2025 guidance, which Rudi will review in more detail during his operational overview. During the quarter, the company took further steps to strengthen its near-term liquidity through the initiation of new gold hedges. This move takes advantage of strong prevailing market prices for a portion of our gold production, providing added protection for the balance sheet as the Confanci S3 expansion project ramps up the design capacity.

Tristan Pascal: Whilst our copper production was lower quarter over quarter at our Zambian operations production is expected to be stronger in the second half of the year and we remain on track to achieve our 2025 guidance.

Tristan Pascal: Which really will review in more detail during this operational overview.

Tristan Pascal: During the quarter, The company took further steps to strengthen its near-term. Liquidity through the initiation of new gold hedges.

Tristan Pascall: We continue to evaluate additional initiatives to enhance our financial flexibility and further reinforce our balance sheet, which Ryan will address in more detail during his financial overview.

Tristan Pascal: Depends a strong prevailing market prices for a portion of our gold production, providing added protection for the balance sheet as the consanti S3 Expansion Project. Ramped up for design capacity.

Tristan Pascall: Additionally, we have identified a new exploration opportunity in near-surface gold zone occurrences at Kinshasa. and our test work to date, albeit preliminary, is yielding promising results, which I will speak more later on in the call. During the quarter, after constructive discussions with the Government of Panama, it was pleasing to receive formal approval of the Preservation and Safe Management Program for the Cobra Panama Mine. The implementation of the PNSM plan is now underway under the oversight of a multidisciplinary team of regulatory officials. As part of the program, the first shipment of concentrate was completed in late June and subsequently, vessels number 2 and 3 shipped earlier this month, July.

Tristan Pascal: We continue to evaluate additional initiatives to enhance our financial flexibility and further reinforce our balance sheet which Ryan will address in more detail during his financial overviews.

Tristan Pascal: additionally, we have identified a new expiration opportunity in near surface gold Zone, the current Secretary

Tristan Pascal: and our tests work today will be at Primm preliminary is yielding promising results.

Tristan Pascal: Which I will speak more uh, later on in the call.

Tristan Pascal: During the quarter, after constructive discussions with the government of Panama, it was pleasing to receive formal approval of the preservation. Safe Management program for the Cobra, Panama mine.

Tristan Pascal: The implementation of the pns and plan is now underway under the oversight of a multi-disciplinary team of regulatory officials.

Tristan Pascall: We expect to complete the fourth and final vessel shipment in coming days. During the export process, we have worked in close collaboration with government representatives as well as nearby communities in order to enhance transparency and communication, and the concentrate was loaded and exported safely without incident. The proceeds generated from the sale of the concentrate are earmarked to fund procurement with our local suppliers and local employment in Panama as part of the PNSM plan implementation and the ongoing environmental stewardship of the mine.

Tristan Pascal: As part of the program, the first shipment of concentrate was completed in late June and subsequently vessels. Number 2 and 3 shipped. Earlier this month July

Tristan Pascal: We expect to complete the the fourth and final vessel shipment in coming days.

Tristan Pascal: During the export process, we have worked in close collaboration with government Representatives as well as nearby communities in order to enhance, transparency and communication and the concentrate was loaded and exported safely without incident.

Tristan Pascal: The proceeds generated from the sale of the concentrate are earmarked to fund procurement with our local, suppliers and local employment in Panama, as part of the pnsn plan implementation and the ongoing environmental stewardship of the Mind.

Tristan Pascall: The PNF in plan approved. Approval also authorizes the reactivation of Cobra Panama's power plant. All necessary licenses and permits are in place and we have commenced preparation work for the restart, including pre-commissioning inspections. The restart of the power plant is anticipated for the fourth quarter of this year.

Tristan Pascal: The pns plan approves.

Tristan Pascal: Approval. Also authorizes the reactivation of Cobra Panama's power plant.

Tristan Pascal: All necessary licenses and permits are in place and we have commenced preparation work for the restart including pre-commissioning. Inspections.

Tristan Pascal: The restart of the power plant is anticipated for the fourth quarter of this year.

Tristan Pascall: Separate to the P&SM plan, the 10th external environmental audit was completed in March and a final report was submitted to government in April. These audits are conducted by the regulator and local consultants in Panama with the support of international experts. Additionally, community members participate as observers during the field phase, reinforcing transparency and stakeholder engagement. I am pleased to share that the audit found zero environmental non-compliance. The 11th external environmental audit began in June and the final report is expected in the coming months.

Tristan Pascal: Separate to the pns plan, the 10th external environmental audit was completed in March and a final report was submitted to government in April.

Tristan Pascal: These audits are conducted by the regulator and local consultants in Panama with the support of international experts.

Tristan Pascal: additionally community members participated as observers during the field phase reinforcing, transparency, and stakeholder engagement

Speaker Change: I am pleased to share that the audit found zero Environmental. Non-compliances

Tristan Pascall: Additionally, the company conducted a comprehensive site-wise corrosion inspection audit of all major structures with an external team of international experts and we are also awaiting the final report from this work.

Speaker Change: The 11th. External environmental audit began in June and the final report is expected in the coming months.

Speaker Change: Additionally the company conducted a comprehensive site wise, corrosion inspection audit of all major structures with an external team of international experts. And we are also waiting the final report from this work.

Tristan Pascall: On to power in Zambia, and whilst Lake Kariba levels are recovering following a stronger rainy season, power restrictions do remain in effect in Zambia. Our operations however did not experience any power disruptions due to our import contract. Nevertheless, we continue to work on medium and long-term power security for our Zambian operations and to support electricity availability in the country.

Speaker Change: On to power in Zambia.

Speaker Change: And whilst Lake Corey, the levels are recovering following a stronger rainy season power restrictions do remain in effect in Zambia.

Speaker Change: Our operations have a did not experience any power of disruptions due to our import contracts.

Tristan Pascall: During the quarter, the company entered into a 10-year agreement with Africa Green Co. for the supply of solar power from the Chisamba Solar PV project, which will provide a minimum of 25 megawatts of baseload power for the company, whilst the remainder will be made available to other Zambian customers.

Speaker Change: Nevertheless, we continue to work on medium and long-term power security for our zameen operations and to support electricity availability in the country.

Tristan Pascall: The project was inaugurated by the President of Zambia on June 30, 2025, and represents a key milestone in expanding the country's renewable power generation capacity. Additionally, the company continues to advance grid stability workstreams in partnership with SESCO to support growing industrial demand in the northwest province. These efforts are critical to enabling large-scale integration of new renewable power resources and ensuring long-term good resilience.

Speaker Change: During the quarter, the company entered into a 10 year agreement, with Africa greenco for the supply of solar power. From the chamber solar PV project, which will provide a minimum of 25 megawatts of Base load power for the company. Whilst the remainder will be made available to other Zambian customers.

Speaker Change: The project was inaugurated by the president of Zambia on June, 30, 2025 and represents a key. Milestone, expanding countries, renewable power, generation capacity.

Speaker Change: Additionally, the company continues to advance grid stability. Work streams in partnership with zesco to support, growing industrial demand in the Northwest province.

Speaker Change: These efforts are critical to enabling large-scale. Integration of new Renewable Power resources and ensuring long-term good resilience.

Rudi Badenhorst: With that, I will now turn the call over to Rudi for his operational review. Thank you, Tristan. Before I review our second quarter operational results...

Rudy Bannon: Without I will now turn the call over to Rudy for his operational review.

Rudy Bannon: Thank you, Justin.

Rudi Badenhorst: I would like to pay my respects and condolences to the family and friends of our colleague at the Trident Operations. Regrettably, during the quarter, Eldridge entirely passed away following an accident at the Sentinel Pits. This was a tragic incident, and I would like to reiterate the company's commitment to the health and safety of our workforce. The continuous improvement of the safety culture at all of our operations is a priority for First Quantum. during the quarter. We produce 91,000 tons of copper, beyond 9% from the first quarter, mainly due to lower production and consumption. Reflecting the lower production volumes, copper C1 cash costs were 5 cents higher at $2 a pound.

Rudy Bannon: Before I am at you, our second quarter of operational results.

Rudy Bannon: I would like to pay my respect and condolences to the family and friends of our colleague at the Thailand, operation.

Rudy Bannon: The regrettably during the quarter Elders, entirely passed away following an accident at the Sentinel pit.

Rudy Bannon: This was a tragic incident and I would like to reiterate the company's commitment to the health and safety of our Workforce.

Rudy Bannon: During the quarter.

Rudy Bannon: We produced 91,000 tons of copper in the arm 9% from the first quarter, mainly due to lower production and consumption.

Rudi Badenhorst: At Kinshenshi, sulphide grade for the quarter was lower, mainly as a result of the reclassification of sulphide ore to mixed ore in the 1915 cutback, and at the same time, a portion of the volume mined was downgraded from high to low grade. However, the mole tonnage in the S2 sulfide circuit increased by approximately 3,300 pounds per day when compared to the first quarter. based on continuous improvement of blasting practices and ore fragmentation. The quarter was further impacted by a planned 40-day shutdown at the smelter, which commenced on the 1st of June. As part of the preparation work for the shutdown, there were planned asset restrictions, which limited feed flexibility through the circuits, and resulted in the oxide circuit processing mixed ore for the entire month of June.

Rudy Bannon: Reflecting the lower production volumes copper C1 cache costs were 5 cents. Higher at $2. A pound.

Rudy Bannon: A Canty sulfide growth for the quarter was lower, mainly as a result of the reclassification of sulfite or to mixed or in the main 15 cut back. And at the same time, the portion of the volume. Mine was John greatest from high to low grade.

Rudy Bannon: however, the mold tonnage and the S2 sulfide circuit increased by approximately 3,300 tons per day, then compared to the first quarter,

Rudy Bannon: Based on continuous Improvement of blasting practices and all fragmentation.

Rudy Bannon: The quarter was further impacted by a planned, 40-day shutdown, at the smelter.

Rudy Bannon: Which commenced on the 1st of June.

Rudy Bannon: As part of the preparation work for the shutdown.

Rudy Bannon: We were planned asset restrictions which limited feed flexibility through the circuits.

Rudi Badenhorst: This lowered overall feed grades compared to the previous quarter, and as such, Kansanshi reported copper production of 40,000 tons in Q2, a decrease slightly over 6,000 tons. Copper C1 cash cost of $1.47 a pound was 13 cents higher, quarter over quarter, as a result of the mineral production. However, this was partially offset by meaningful gold by-product credits, as gold production continued to be strong at 28,000 ounces, driven by the upgrade of two existing gravity concentrators and the installation of a new gravity concentrator, which was commissioned late in the first quarter of 2025. It's now to return to operation in early July.

Rudy Bannon: and resulted in the oxide circuit processing mixed or for the entire month of June,

Rudy Bannon: this lowered overall fee grades completed the previous quarter. And as such can change, it reported copper production of 40,000 tons in Q2 a decrease slightly over 6,000 tons.

Rudy Bannon: Copper C1 cash cost of 147. A pound was 13, cents, higher quarter of a quarter, as a result of the lower production higher. This was partially of said by meaningful gold. Byproduct units, as gold production continued, to be strong at 28,000 Oz driven by the upgrade of 3 existing 11. Concentric on the installation of a new reality concentrator which has commissioned late in the first quarter of 2025.

Rudi Badenhorst: This, along with the commissioning of the S3 expansion, will set up the second half of the year for stronger production on Kinshanshi, and we remain confident with our 2025 guidance of 160 to 190,000 tons of copper. and 100,000 to 110,000 ounces of gold. At Sentinel, copper production totaled 43,000 tons in the second quarter, down approximately 3,000 tons from Q1 due to the mining of lower grades from stage 3. While the quarter was impacted by a four-day planned shutdown, Amsterdam 2-Borne will continue to experience flange-pulse fatigue. Trip will improve quarter over quarter. At the down time we went into the bolt replacements, it was at least more efficient.

Rudy Bannon: This now to return to operation in early July.

Rudy Bannon: This along with the commissioning of the S3 expansion will set up the second half of the year for stronger production and cannae.

Rudy Bannon: And we remain confident with our 2, 2025 guidance of 160 to 190,000 tons of copper.

Rudy Bannon: And 100 to 110,000 oz of gold.

Speaker Change: A sentinel copper production, totals 43,000, tons. In the second quarter down. Approximately 3,000 tons from q1 due to the mining of lower grades from stage 3,

Speaker Change: while the quarter was impacted by a 4-day plan shardan

Speaker Change: And 22 Bond will continue to experience flange bolts, t.

Speaker Change: Triple improved quarter of a quarter.

Rudi Badenhorst: With the lower production, Copper C1 cash cost of $2.77 a pound was 22 cents higher than the preceding quarter. with respect to the Baltimore fatigue issues. that were identified in the first quarter. The company is working closely with the regional OEM and is in the process of finalizing corrective procedures. As such, 2025 Copper Production Guidance remains unchanged at £200,000 to £230,000. The grain is expected to be stronger in the second half as mining progresses to the bottom of stage 1 pit for some development ahead of the wet season, and primary sulphide ore is exposed in stage 3.

Speaker Change: Related to the bolt Replacements, was a great morning.

Rudy Bannon: With a lower production copper C1 cash cost of 2.77 pound was 22 cents higher than the preceding quarter.

Rudy Bannon: With respect to the ball more fatigue issues.

Rudy Bannon: That were identified in the first quarter. The company is working closely with the original OEM and it is in the process of finalizing collected procedures.

Rudy Bannon: As such 2025, copper production, guidance remains unchanged at 2 to 230 pounds.

Rudy Bannon: For the great expected to be stronger than the second half as mining the greatest to the bottom of stage. 1 bit, for some developments ahead of the weight season.

Rudy Bannon: And primary Soldiers by all is exposed in States.

Rudi Badenhorst: I would change the products. Nickel production of 4,000 tonnes was down 14% from the previous quarter due to lower throughput and grades as a result of a higher proportion of tundra in the ore due to the change in the mining sequence and the deployment of permanent dams to widen the footprint. Nickel C1 cash cost increased to $5.83 per pound due to lower production volumes and higher mining contact. In response to the challenging conditions for the nickel market, the mining plan at Enterprise has been revised to minimize waste stripping in long-term cutbacks. Therefore, not compromising on our availability.

Rudy Bannon: Nickel production, or 4,000 tons, or a down 14% from the previous quarter.

Rudy Bannon: Due to lower 3.00 and grades. As a result of a higher proportion of tanzine or all nuclear change, in the mining sequence under deployment of permanent ramps to widen the footprint.

Rudy Bannon: Nickel C1 cash cost increased to 583 per pound.

Rudy Bannon: due to lower production, volumes and higher mining contract across

Rudy Bannon: In response to the challenging conditions, for the nickel Market.

Rudy Bannon: The mining plan at Enterprise has been revised to minimize waste shipping in long-term cutbacks.

Rudi Badenhorst: We maintain production within the garden's range of 15,000 to 25,000 tons of nickel. At Panama, we continue with the necessary work to maintain and preserve the infrastructure and equipment on site. Preservation and site management costs average $15 million per month during the quarter. These monthly costs increased from the previous quarter as June booked additional costs related to concentrate shipments and the pre-commissioning activities for the power plant. The restart of the power plant in the fourth quarter is expected to increase BNSM costs to a range of $17 to $18 million per month.

Rudy Bannon: Therefore not compromising on over availability.

Rudy Bannon: We maintain production within regarding change of 15 to 25,000 tons of milk.

Rudy Bannon: At Panama, we continue with the necessary work to maintain and preserve the infrastructure and equipment on site.

Rudy Bannon: Preservation and take money and costs average 15 million dollars a month during the quarter.

Ryan MacWilliam: Thank you, and with that, I will hand the floor over to Ryan for a physical review. Thank you, Rudi. Starting with the market. Copper prices fell sharply early in the quarter following the Trump administration's Liberation Day tariff proposal. However, prices quickly rebounded as the tariffs were suspended and the concentrate market remained tight due to resilient Chinese demand. The Chinese stimulus to offset the impact of trade tensions on their economy has provided a strong demand hedge for the copper price through much of this year. Prices have softened slightly subsequent to the end of the quarter due to renewed trade uncertainty, but the physical market remains strong.

Rudy Bannon: The restart of the power plant and the fourth quarter is expected to increase. The nhm costs to the range of 17 to 18 million dollars per month.

Ryan Megill: Thank you. And with that, I will hand the call over to Ryan for a physical review.

Ryan Megill: Thank you, Rudy.

Speaker Change: Starting with the market.

Speaker Change: Copper prices. Fell sharply early in the quarter, following the Trump administration's Liberation day tariff proposals.

Speaker Change: However, prices quickly rebounded, as the tariffs were suspended and the concentrate Market remained tight due to resilient Chinese demand.

Speaker Change: The Chinese stimulus to offset the impact of trade tensions, on their economy, has provided a strong demand Hedge for the copper price through much of this year.

Ryan MacWilliam: More recently, the Trump administration has suggested that there will be a 50% tariff on copper imports into the U.S. We note that we do not currently have any copper sales into the US and therefore do not expect any direct impact on our revenues should these tariffs come into effect.

Speaker Change: Prices have softened slightly subsequent to the end of the quarter, due to renewed trade uncertainty, but the physical Market remains strong.

Speaker Change: More recently, the Trump Administration has suggested that there will be a 50% tariff on copper Imports into the US.

Speaker Change: We note that we do not currently have any copper sales until the US and therefore do not expect any direct impact. On our revenues. Should these tariffs come into effect?

Ryan MacWilliam: Moving on to our second quarter results. Revenue grew by 3% quarter over quarter, driven by higher gold sales volumes, along with improved metal prices. This contributed to a 6% uplift in EBITDA and a $41 million improvement in net earnings. Copper CO2 costs were up 3% to $2 per pound. was predominantly driven by lower production that was partially offset by strong gold prices and the resulting byproduct credit. Remaining input prices and Zambian power rates were stable during the...

Speaker Change: Moving on to our second quarter results.

Speaker Change: Revenue grew by 3%, quarter over quarter driven by higher gold sales volumes along with improved metal prices.

Speaker Change: This contributed to a 6% uplift in ebita and a 41 million Improvement in net earnings,

Speaker Change: Copper Cuts were up 3% to 2 dollars per pound.

Speaker Change: This was predominantly driven by lower production, that was partially offset by strong gold prices and the resulting byproduct credits.

Ryan MacWilliam: More broadly, we're maintaining a disciplined focus on costs, with regular cost reviews and proactive contract negotiations. On the balance sheet, we continue to take proactive steps during the quarter to further strengthen our liquidity position and enhance our financial resilience. During the quarter, we entered into a supplemental three-year, $500 million copper prepayment, which further reinforced our liquidity. Additionally, we initiated the gold hedging program using zero-cost collars established at a time of record high gold prices. We've hedged approximately 78,000 ounces of gold to the end of June next year, at average floor and cap strikes of roughly three and $4,000 per ounce respectively.

Speaker Change: Remaining input price prices and Zambian power rates were stable during the quarter.

Speaker Change: More broadly, but maintaining a disciplined focus on costs with regular cost reviews and proactive contract negotiations.

Speaker Change: On the balance sheet, we continue to take proactive steps during the quarter to further. Strengthen our liquidity position and enhance our financial resilience

Speaker Change: during the quarter, we entered into a supplemental 3 year 500 million copper prepayment which further reinforced our liquidity

Speaker Change: Additionally, we initiated the gold hedging program using zero cost collars established at a time of record high gold prices.

Ryan MacWilliam: These gold hedges complement our copper hedging program, which continues to provide valuable protection against price volatility. We now have coverage of approximately 60% of our planned copper production through the end of 2025 and 40% through the end of through the first half of 2020.

Speaker Change: We've hedged approximately 78,000 ounces of gold to the end of June next year at average, floor and cap. Strikes of roughly 3, and 4000 per ounce respectively.

Speaker Change: These gold Hedges complements, our copper hedging program which continues to provide valuable protection against price volatility.

Speaker Change: We now have coverage of approximately 60% of our plan, copper production, through the end of 2025.

Ryan MacWilliam: While our long-term strategy is to be unhedged, we view selective hedging as a valuable tool to support our financial resilience and safeguard the balance sheet during the construction and ramp-up of the S3 expansion. During the quarter, net debt improved by $334 million to $5.5 billion, driven by the proceeds from the second COPRA prepayment, strong EBITDA, and favourable working capital movement. Equity remains strong at $1.7 billion, comprising of $737 million in cash and $930 million of undrawn revolvers.

Speaker Change: And 40% through the end of through the first half of 2026.

Speaker Change: While our long-term strategy is to be unhedged, we use selective hedging as a valuable tool, to support our financial resilience.

And Safeguard the balance sheet during the construction and ramp up of the S3 expansion.

Speaker Change: During the court app, net debt, improved by 334 million to 5.5 billion driven by the proceeds from the second copper prepayment.

Speaker Change: Strong ebita and favorable working capital movements.

Speaker Change: Liquidity remains strong at 1.7 billion dollars.

Speaker Change: Comprising of 737 million in cash.

Speaker Change: 930 million of undrawn revolver.

Ryan MacWilliam: As the SRE expansion approaches completion, our capital intensity will be winding down and the company will be transitioning to a phase of free cash generation that will be directed towards debt reduction. We also continue to work on initiatives to further strengthen our balance. The initiatives that we have explored include a minority stakes sale in our Zambian business, among other options. However, with the new gold zone identified at Kansanshi, and a constructive gold price, we're also considering other instruments, such as gold prepays and streams, together with the gold hedges that we actioned during the quarter. All financial initiatives will continue to be reviewed side-by-side to thoroughly assess what makes the most strategic and financial.

Speaker Change: As the S3 expansion approaches completion, our Capital intensity will be winding down and the company will be transitioning to a phase of free cash generation. That will be directed towards debt reduction.

Speaker Change: We also continue to work on initiatives to further, strengthen our balance sheet.

Speaker Change: The initiatives that we have explored include a minority stake sale in our Zambian business among other options.

Speaker Change: However, with the new gold Zone identified, a consensus and a constructive gold price. We're also considering other instruments such as gold prepaid and streams together with the gold Hedges that we action during the quarter,

Speaker Change: All Financial initiatives will continue to be reviewed side by side, to thoroughly assess what makes the most strategic and financial sense.

Ryan MacWilliam: In summary, we remain disciplined in our cost and capital management. We continue to maintain a strong liquidity position which underpins our financial resilience. provides a solid foundation for navigating volatile market conditions.

Speaker Change: In summary.

Speaker Change: We remain disciplined in our cost and Capital Management.

Speaker Change: We continue to maintain a strong liquidity position.

Speaker Change: Which underpins our financial resilience.

Tristan Pascall: With that, I'll hand the call back to Tristan. Thanks Ryan.

Speaker Change: Provides a solid foundation for navigating volatile market conditions.

Tristan Pascal: With that, I'll hand the call back to Tristan.

Tristan Pascall: At Consanti, we have two important updates to highlight this quarter. First, on the new surface gold zone occurrences that have been identified in the southeast dome area.

Thanks Ryan.

Tristan Pascal: That consent, you we have 2, important updates to highlight this quarter.

Tristan Pascall: And secondly, on the Consantia S3 expansion project. As part of the Constanti S3 expansion project, the company began pre-stripping of a southeast dome deposit to provide additional sulphide ore feed for the new 25 million tonne sulphide concentrator. During these stripping activities, near-surface gold zone occurrences overlying the copper-gold deposit. were identified, and these have emerged as an exciting new exploration opportunity for the Kinshanti mine. From our sampling and analysis to date, we see that the gold mineralization is generally very fine grains, but with some associated coarser particles which present in a nugget effect. These presentations and mineralisation require larger than normal sample sizes in order to properly understand and address both the nugget effect of the coarse gold and also the fine gold content.

Tristan Pascal: Dime area and secondly, on the consensus through Expansion Project.

Tristan Pascal: As part of the consenti, S3 Expansion Project, the company began pre-show of the southeast Dome deposit to provide additional sulfide or feed for the new 25 million tons sulfide concentrator.

Tristan Pascal: During the stripping activities near surface, gold Zone occurrences overlying, the copper gold deposit.

Tristan Pascal: We're identified and these have emerged as an exciting new expiration opportunity for the consensus mind.

Tristan Pascal: From our sampling and Analysis today. We see that the golden mineralization is generally very fine grains, but with some Associated coarser particles which presents in a nugget effect.

Tristan Pascall: Due to the nugget effect, the size and grade of the near-surface gold zone occurrences are currently uncertain, and our efforts are focused on better understanding both of these aspects. Initial testing of gold mineralisation has been conducted using the existing gold facilities at site and also rapid installation of a small scale pilot plant. We have been encouraged by the preliminary results, which have provided clear lessons for further upcoming work. As a result, we have initiated work on a pilot plant with an estimated completion later this year, which is intended to support understanding of processing design for the gravity gold mineralization.

Tristan Pascal: These presentations are mineralization require larger than normal sample sizes in order to properly understand and address both the Nugget effect of the course gold and also the fine gold content.

Tristan Pascal: Due to the Nugget affect the size and greater the near surface gold Zone. Occurrences are currently uncertain and our efforts are focused on better understanding both of these aspects.

Tristan Pascal: Initial test, the gold mineralization has been conducted using the existing gold facilities at site and also rapid installation of a small Scale Pilot plant.

Tristan Pascal: We have been encouraged by the Prix preliminary results, which have provided clear lessons for further upcoming work.

Tristan Pascall: Our exploration test work is ongoing, and our intent is to work towards defining a resource for the near-surface gold-zoner currency.

As a result, we have initiated work on a pilot plant with an estimated completion. Later this year, which is intended to support, understanding of processing design for the gravity, gold mineralization.

Tristan Pascall: We will provide additional updates as appropriate.

Tristan Pascall: As a reminder, ConSanti's current mine plan, guidance, and mineral resource and reserve estimates do not include this new gold zone occurrence exploration opportunity.

Tristan Pascal: Our expiration test work is ongoing and our intent is to work towards defining a resource, for the new Surface gold, donor currencies, we will provide additional updates as appropriate.

Tristan Pascal: As a reminder, consent is current mind plan, guidance and mineral resource and Reserve estimates through, not include this new gold Zone occurrence expiration opportunity.

Tristan Pascall: Over to the Consangy S3 Expansion Project. During the quarter, first ore was fed from the primary crusher through to the crushed ore stockpile ahead of schedule in the second quarter, and we are now in the final stages of commissioning. In the last few days, all was fed through the SAG mill, the rougher flotation circuit and through to the tailing thickener. First ore to the SAG mill marks an important milestone in the commissioning process for S3 as it establishes full loads on the installed plants and equipment and, to date, the commissioning performance is according to plan.

Over to the consani S3 Expansion Project.

Tristan Pascal: During the quarter first, all was fed from the primary Crusher, through to the crust or stockpile ahead of schedule in the second quarter. And we are now in the final stages of commissioning,

Tristan Pascal: in the last few days all was fed through the SAG Mill, the rougher flotation circuit and through to the tailings thickener.

Tristan Pascall: All major work streams are nearing completion and we remain on budget and on schedule for first production in the second half of this year. Construction is above 91% completion, with configuration of the plant control system at 92%, while operational readiness is at 93%. The remaining construction work is related to non-process infrastructure and reading the site for ongoing operations. All employment requirements have been successfully filled and the transition from a readiness team to the operational team has begun. Operators and maintenance personnel have commenced controlled plant runs.

Tristan Pascal: First order to the SAG in your marks an important milestone in the commissioning process for S3 as it establishes. Full loads on the in-store, plant and equipment, and to date, the commissioning performance is according to plan.

All major work streams are nearing completion and we remain on budget and on schedule for first production and the second half of this year.

Construction is above 91% completion with configuration of the plant control system. At 92% while operational Readiness is at 93%.

Tristan Pascal: The remaining construction, work is related to non-processed and reading the site for ongoing operations.

Tristan Pascal: All employment requirements have been successfully filled and the transition from a Readiness team to the operational team has begun.

Tristan Pascall: We look forward to hosting the President of Zambia in August when he inaugurates the Consent ES3 expansion. Also during the second quarter, Sentinel began installation of an innovative, low-energy consumption conveyor technology, utilizing rail carts in replacement of traditional idling The 1.6 metre wide rail run conveyor system at Sentinel will transport ore 3km from the new crusher 2B position to the pit stop bin and is expected to be completed in late 2025 when the crusher itself is relocated. Due to lower tension and lower friction in the system, the railroad conveyor is expected to draw potentially 50-70% less power than traditional conveyors.

Tristan Pascal: Operators and maintenance Personnel. Have commenced controlled plant runs.

Tristan Pascal: We look forward to hosting the president of Zambian August when he inaugurates the consensus through expansion.

Tristan Pascal: Also, during the second quarter, Sentinel began installation of an Innovative low energy consumption, conveyor technology, utilizing rail carts, in replacing the traditional idlers.

Tristan Pascall: In addition, maintenance of the rail carts is indexed at one location, where carts can be sequentially maintained as opposed to maintaining idlers along the full length of a traditional conveying system. The low-energy, rail-run conveyor system installation at Centaur represents yet another first-mover innovation by First Quantum and provides potential for substantial capital and operating efficiencies in our future projects. As the Consange Estuary Expansion nears completion, this will mark First Quantum's ninth major self-build project in the last two decades, which has allowed the company to grow from 40,000 tonnes of copper production in 2004 into one of the leading global copper producers that it is today.

The 1.6 M wide rail, run conveyor system at sensor will transport all 3 km from the new crush at 2 B position to the pit stop bin and is expected to be completed in late 2025, when the crusher itself is relocated due to low attention and lower friction in the system, the railroad conveyor is expected to draw, potentially 50 to 70% less power than traditional conveying.

Tristan Pascal: In addition maintenance of the rail cards is indexed at 1 location, where car cars can be sequentially maintained as opposed to maintaining idlers along the full length of a traditional conveying system.

Tristan Pascal: The low energy rail run conveyor system installation at Sentinel represents yet another first mover Innovation by first Quantum and provides potential for a substantial capital and operating efficiencies in our future projects.

Tristan Pascall: Since 2003, First Quantum has successfully delivered over $13 billion in capital projects, an achievement built on consistency, innovation, and an entrepreneurial culture. We have built projects across many different continents and each project has been a learning opportunity. Our in-house expertise has been transferred from one project to the next, ensuring that every lesson learned strengthens the next build. Our execution approach, refined over the years, is now a unique advantage and distinguishes our company from our peers. The second half of 2025 promises to be a busy but exciting time for the company in Zambia. We will be advancing exploration work on the newly identified near-surface gold zone occurrences at Kinshanshi, while simultaneously ramping up activities on the Esther expansion project.

Tristan Pascal: As the consensus expansion news completion. This will Mark first Quantum from 9th major self-built projects in the last 2 decades, which is allowed the company to grow from 40,000 tons of copper production and 2004 into 1 of the leading Global copper producers that it is today.

Tristan Pascal: Since 2003, first Quantum is successfully delivered over 13 billion dollars in capital projects and achievement built on consistency Innovation and an entrepreneurial culture.

Tristan Pascal: We have built projects across many different continents, and each project has been a learning opportunity.

Tristan Pascal: Transferred from 1 Project to the next, ensuring that every lesson learned strengthens the next build.

Tristan Pascal: Our execution approach refined over the years is, now a unique advantage and distinguishes, our company from our peers.

Tristan Pascall: We look forward to showcasing both of these projects and the innovative rail run conveyor at Sentinel during our upcoming site tour for Analyst Investors in September.

Tristan Pascal: The second half of 2025 Pro promises to be a busy but exciting time for the company in Zambia. We will be advancing exploration work on the newly identified near surface gold Zone occurrences of konkonte while simultane simultaneously ramping up activities on the S3 Expansion Project.

Operator: Thank you, operator. I'm happy to open the call for Q&A. Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. If you would like to withdraw your question, simply press star 1 again. We ask that you please limit yourself to one question and one follow-up. Please ensure you are not on speakerphone and that your phone is not on mute when called upon. Thank you.

We look forward to showing showcasing both of these projects and the Innovative rail run conveyor Sentinel during our upcoming site tool for analysts investors in September.

Tristan Pascal: Thank you, operator. I'm happy to open the call for Q&A.

Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad, if you would like to withdraw your questions simply press star 1. Again, we ask that you please limit yourself to 1 question and 1 follow-up.

Tristan Pascal: Please ensure you are not on speakerphone and that your phone is not on mute when called upon thank you.

Orest Wowkodaw: Your first question comes from Orest Wowkodaw of Scotiabank. Your line is open. Hi, good morning. I'm wondering if you could please give us an update on the situation in Panama. And I'm just wondering specifically whether you can comment on whether negotiations have begun with the government on a restart agreement, or if they have not yet begun just when we could anticipate them to begin.

Your first question comes from Aurora's Wilder of Scotia Bank, your line is open.

Hi, good morning. Um, I was wondering if you could, please give us an update on the situation in Panama, and I'm just wondering specifically whether, um, you can comment on whether negotiations have begun with the government on a restart agreement, or if they have not, yet begun, just when we could anticipate them to be done.

Tristan Pascall: Hi Orest. Thanks for the question. Yeah, look, I think we saw great progress in the quarter in terms of now the approval of the Preservation and Safe Management Plan, which provides the construct around ongoing proper environmental stewardship of the asset and maintaining asset integrity, but then also for the export of the copper concentrate and the restart of the power plant. So we see that as an important first step, but we're going step by step. We continue to work on public perception. Certainly the PNSM Plan was well received publicly and it's important to continue to build on that momentum.

Orest Wowkodaw: We will follow the government's guidance in respect of negotiations or towards resolution and resolving the long-term issues there at the mine, but we, as I said, we'll be working through that step by step. Okay, as a follow up, as part of the environmental preservation plan, it's great that you can ship the concentrate.

Speaker Change: Hi, erised, thanks for the question. Yeah, look, I think we saw great progress in the quarter in terms of now, uh, the approval of the preservation and safe management plan, which provides the construct around. Ongoing proper environmental stewardship of the asset and, and maintaining asset Integrity. But then also for the export of the copper concentrate and the restart of the power plants. So we see that as an important First Step, um, but we're going to step by step, we continue to work on public perception. Um, certainly the the pns and plan was well received publicly, um, and it's important to continue to build on that momentum. Um we will follow the government's guidance in respect of negotiations or uh towards resolution and resolving. Um the the long-term issues there at the mine. Um but we as I said we'll be working through that um step by step.

Tristan Pascall: I'm wondering if you can comment on the ore stockpiles on site, specifically on whether you think those are going to be processed via mill drain, and I'm curious on what the contained copper is in those ore stockpiles.

Speaker Change: Okay as a follow-up um as part of the environmental preservation plan um it's great that you can ship the concentrate. I'm wondering if you can comment on the orto piles on site. Um specifically on whether you think those uh are going to be processed via mil drain and and I'm curious on what the contained copper is in those or stock piles.

Tristan Pascall: Yeah, sure, Orest. Yeah, look, the Preservation and Safe Management Plan approval, as you said, allows for the export of the concentrates and operation of the power plant and the ongoing maintenance activities and environmental stewardship of the site.

Tristan Pascall: It doesn't, at this stage, allow for the use of the power plant. Include approval for the stockpile processing, that needs to be agreed with the Government of Panama, but we do think it's an important step because it provides feed that is necessary through the cyclone plant on the tailing stand, and so is an important addition that we can keep up with erosion and so on on the tailing stand. As I said it needs the government approval.

Speaker Change: Yeah, sure. Or um, yeah. Look the preservation sake management, plan approval. As you said, um, allows for the export of the concentrate and operation of the power plant and the ongoing maintenance activities and environmental stewardship of the site. Um, it doesn't at this stage, uh, uh, include approval for the stockpile processing. That needs to be agreed with the government of Panama, but we do think it's an important step because it provides feeds that is necessary through the Cyclone plant uh on the tailings dam. And so is an important uh, addition that we can keep up with erosion. And so on, on the timing stamp, um,

Tristan Pascall: In terms of the copper content there, the number is around 14 million tonnes at about 0.5% copper is what we believe is in the stock.

Speaker Change: Uh otherwise as I said, it needs the government approval in terms of the copper content there. Um, the the numbers around 14 million tons at about 0.25% copper is is what we believe is in the stock golf.

Matthew Murphy: The next question comes from Matthew Murphy with BMO Capital Markets. Your line is open. Hi, I'd like to ask about this gold opportunity at Kinshanshi. I think in the past, it's been a little tough to understand how much gold is at Kinshanshi, and it tends to give more than what you think is there. So like, how are you thinking about this target? Do you have an exploration goal in terms of number of ounces you want to get to and a timeline you want to get there on?

Speaker Change: The next question comes from Matthew Murphy with BMO Capital markets. Your line is open.

Matthew Murphy: Hi. Um,

Speaker Change: like to, uh, ask about this gold opportunity at can sanchi, um,

Speaker Change: I think in the past it's been a little tough to understand how much gold is that can sanchi and it tends to, uh, to give more than what you think is there. So like how are you thinking about, um, this target, do you have a exploration goal in terms of number of answers? You want to get to and a timeline you want to get there on?

Tristan Pascall: Hi Bats. So the first thing to say, this is very separate from the gold resource that's included, for example, in the 43-101, our reserves and resources statement. So this is very different. It's near surface and as we said, came about as we were going through the pre-strip at South East Dome.

Tristan Pascall: We're excited about that opportunity, but it is still early days and it's important to say it's very much an exploration opportunity. As I said, the key element is around the nugget effect. It is distributed fine gold and that boils down to the deposition mode that we believe has occurred here, primary deposition, which relates to gold. As we see in Cincinnati, the big vein of structures, and then as those have eroded away, we've seen that primary deposit available, but then some secondary deposition as that's moved and been transported. So both acts of deposition happening here. And that's very separate from what is in the in-situ resource area.

Speaker Change: To say it's very much an expiration opportunity. Um, as I said, the key elements is around the the Nugget effect there is

Speaker Change: distributed uh, fine gold and that boils down to the deposition mode that we believe has uh, occurred here a primary deposition which relates to

Tristan Pascall: But look, because of the nugget effect, what we see is we need to work through that steadily. We need to take large bulk samples to come to a reliable statistical definition of the resource. That's the requirement. As such, it's difficult to put a timetable towards building that resource, but we would hope that we can get it in place next year subject to that statistical work around mineralization. But it's very exciting.

Speaker Change: You know, as we see in consanti the big vein, the structures, and then, as those of eroded away, we've seen that primary deposit available, but then some secondary death position as that, uh, moved and been transported. So both, um, acts of deposition Happening Here. Uh, and that's very separate from what is in the in situ, uh, resource, uh, area. So, but look because of the Nugget effect. Uh, what we see is we we need to work through that steadily. We need to take large bulk samples to come to a reliable stat statistical definition of the resource, that's the requirements as such. It's it's difficult, um, to put a timetable or a, um,

Tristan Pascall: It's over a strike length of some seven and a half kilometers, but we're still learning about geology and we're still learning about the process.

Tristan Pascall: Okay, understood. And so when you think about options like gold prepays and streams, should we think about that as being constrained to the like convention open pit operations? because this would be sort of too long dated to monetize or could it all be part of the same thing? Yeah, I think it provides further upside, but Ryan, you might just comment on streams and how we think about that sort of thing, pre-paging.

Speaker Change: Ideology, uh, and we still learning about the process.

Speaker Change: Okay, understood. And so, when you think about options like gold prepays and streams, um, should we think about that as being, uh, constrained to the like, can sanchi open pit operations? Um,

Speaker Change: Because this would be sort of too long dated to monetize, or could it all be part of the same thing?

Ryan MacWilliam: Sure.

Ryan MacWilliam: Hi, Matt. I mean, what changed really in the last year is we've obviously seen record high gold prices. That means the gold prepay market is strong. It means it's obviously an active market in streams. And what that does for us is give us a variety of options from a financing and balancing perspective, in addition to some of those that we've previously talked about, such as the minority stake sale. Those focus on the existing gold that's in the resource, separate to this new gold discovery. But obviously, any incremental gold just adds to the further financial robustness of Kansanshi, which means any option you look at is overall more attractive.

Speaker Change: yeah, I think it provides further upside, but Ryan you might just comment on, on, on streams and how we we think about, uh, that sort of thing is pretty crazy for

Speaker Change: Yeah, sure. Hi, Matt. I mean, what changed really in the last year is we've obviously seen seen record high gold prices. That means the gold prepay Market is strong. It means there's obviously, an active market and streams. And what that does for us is give us, you know, a variety of options from the financial in balance sheet perspective. In addition to some of those that we previously talked about such as the minority stake sale. You know, those focus on the existing goal that's in the resource separate to this new gold, um, Discovery. But obviously, any incremental goal just adds to the further Financial robustness of cannae. Which means any option you look at is is, is overall more attractive.

Anita Soni: The next question comes from Anita Soni with CIBC World Market. Your line is open. Hi, good morning Tristan and team.

Speaker Change: The next question comes from Anita Sony with CIBC World Markets, your line is open.

Anita Soni: I'm going to follow up on Orest's question about COBRE. Could you just remind us of, I guess remind me of the timelines in terms of the next steps at getting COBRE started? So you've got to get the government to negotiate. Are there any other things that it's got to pass through Parliament? Can you give us sort of the steps again to get the restart happening?

Anita Sony: Hi, good morning. Uh, Tristan and team. Um, I'm going to follow up with on Ora's question about Cobra. Uh, could you just remind us of? Um, I guess remind me of the timelines. Um in terms of like the next steps that uh getting corporate started. So you've got to do the get the government to negotiate. Um, are there any other things uh, you know, then it's got to pass through Parliament? Can you give us sort of a you know the the steps again and and to get the the the restart happening.

Tristan Pascall: Hi Anita. Yeah, sure. Look, those timelines are uncertain. What we can point to is the President's public statements and, you know, we've been encouraged alongside the political side is also on the public perception in terms of the platform to engage around resolution in Panama. The President's public statements are that he would like to see a resolution this year before the end of the year and that the table is open now for dialogue subsequent to the suspension of arbitrations, most recently the suspension by Franco-Nevada. But in terms of that conversation, we wait for formal feedback from government and it's important that we go through that step by step.

Tristan Pascall: In the meantime, as I said, the PNSM plan is an important first step. In terms of the milestones through that, to your question, I think we just need to wait and see. We're not putting any constraints around that. You know, we would like to see, for example, the stockpiles because of the impact they have in terms of being able to ensure environmental stewardship on the tailings dam. But as I said, we'll move through those milestones step by step. You know, more broadly, on the public perception side, what we do see is the economic situation in Panama has had an effect alongside the work we've been doing in terms of creating engagement and listening to Panama about the perceptions around the mine.

Anita Sony: Hi, Anita. Yeah, sure. We look those timelines are uncertain. Uh, we can point to is the president's public statements and, you know, we've been encouraged. Alongside the political side is also on the public perception in terms of the platform to engage, uh, around resolution in Panama on, you know, the, the the president's public statements are that he would like to see a resolution this year, um, before, uh, the end of the year. Uh, and that um, the table uh, is open now for dialogue, uh, subsequent to the suspension of our most recently the suspension by Franklin Nevada. Um, but in terms of that conversation, we wait from for formal feedback from government. Uh, and it's important that we go through that step by step in the meantime, as I said, the payment plan is, is an important.

Tristan Pascall: But certainly, you know, we've seen a focus on the economy, a focus on jobs and employment, importance of where the mine can add to Panama's future growth. And, you know, we've seen the polling, 70% of respondents believe that the closure of the mine has had a negative impact on those areas, the economy and jobs. So, you know, the mine is an opportunity to grow employment, to strengthen the economy. And I think that's been more broadly understood, but the outreach needs to continue and we'll wait to see what the milestones and the engagement process with government is.

Anita Sony: First step, in terms of the Milestones, through that to your question. Um, I think we'll just need to wait and see, we're not putting any constraints around that, um, you know, we would like to see, for example, the the, the stock files because of the impact, they have, uh, in terms of being able to, uh, ensure environmental stewardship on, on the tailing stand. But, as I said, we, we'll move through those Milestones step by step. Um, you know, more broadly, uh, on the public perception side. What we do see is, um, you know, the, the economic situation in Panama has had affect alongside the work we've been doing in terms of uh, creating engagement and and listening to Panama about, um, the perceptions around the mind. But certainly, you know, we've seen uh, a focus on the economy, a focus on jobs and employment, uh, importance of of, where the mind can add to Panama's, uh, future growth. Uh, and you know, we see in the polling 70% of respondents believe that the clock

Closure of the mind has had a negative impact on those areas of the economy and jobs. So, you know, the mind is an opportunity to to grow employment to strengthen the economy. Um, and I think that's

Anita Soni: Okay, my follow-up, two parts if I may. First is, and I'll tell you what they are, but the first is that where does the environmental audit fit into that? Do you need the environmental audit done, completed, signed off before you can negotiate with the government? And secondly, once you get a sign-off, I just wanted to confirm, it's six to nine months before, a sign-off, you know, through Parliament, six to nine months before you can restart operations. Is that correct?

Anita Sony: Totally understood. But the Outreach needs to continue uh and we'll wait to see what the Milestones uh and the engagement process with government is

Speaker Change: I follow up uh, 2 parts. If I met first um, is the and I'll I'll tell you what they are. But the first is that um where does the environmental audit fit into that? Do you need the environmental audit done completed signed off before? You can negotiate with the government and secondly once you get a sign off just I just want to confirm its 6 to 9 months before a sign off. You know, through Parliament 6 to 9 months before you could restart operations, is that correct?

Tristan Pascall: Sure, Anita. So yeah, the environmental audit, the public review process was over, the terms of reference are being finalised as we understand. The current work is with government and as far as I understand, it's on the mechanics of how that will work. It requires coordination between multiple ministries, but sitting with the Ministry of Environment as the key stakeholder there, we're just waiting for formal notification, but we've had no feedback on exact timing or schedule. Our understanding is it could run in parallel, but we wait to hear that clarity.

Speaker Change: Sure. I mean so, yeah, the environmental audit, um, the the public review process was over, the terms of reference are being finalized. As we understand, the current work uh, is with government. And as far as I understand, it's on the mechanics of of how that will work. Um, it

Tristan Pascall: In terms of then following on from any negotiation or arrangements or conversation subject to the government and the people of Panama being comfortable with that, as we said, start-up would take, yeah, we think sort of six to nine months. That's really around understanding the condition of the asset. We've been taking good care of major critical elements, for example, the mills or the rope shovels, electric drills and so on, big mining equipment, but it's a difficult environment and certainly there's been degradation. We did get commission and audit into the corrosion, not really related to the restart, it was more pre-emptive to just understand exactly where we are as part of preservation and we just need to understand.

Speaker Change: Multiple Ministries. Um, but sitting with the ministry environment uh, as as the the key stakeholder there, we just waiting for a formal notification but we had no feedback on exact timing or or schedule. It can our understanding is it could run in parallel. Um, uh, but you know, we we wait to hear that that Clarity in terms of, um, you know, then following on, um, from any negotiate or or arrangements or conversation subject to, you know, the government and the people of Panama, uh, have been comfortable with that. Uh, as we said startup would take, yeah, we think sort of 6 to 9 months, that's really around. Understanding the condition of the asset. We've been taking good care of of major critical elements. Uh, for example, the Mills or the Rope shovels, um, you know, electric drills, and so on, uh, big mining equipment, but, um, it's a difficult environment. And, you know, certainly there's been degradation. We did, uh, get commission, uh,

Tristan Pascall: We think most of that will be sort of small pumps and small ball piping and hence, but there will be some degradation.

Tristan Pascall: At the power plants, we're working through that on a more immediate basis and as I said, we'd like to see start-up at the power plants in October.

Speaker Change: And ordered into the corrosion, not really related to pre uh to the restart. It was more preemptive uh to just understand exactly, you know where we are at as part of preservation. Um, and you know, we just need to understand. We think most of that will be sort of small pumps and and and small ball piping uh and hence. Uh but you know, there will be some degradation at the power plants. We're working through that for a more immediate basis. And as I said, we'd like to see startup

The power plants in October.

Ralph Profiti: The next question comes from Ralph Profiti with Stiefel. Your line is open. Thanks, operator. Good morning, Tristan. At this point, is the pilot plant a gravity only plant? You know, is there the opportunity to introduce flotation and leach to deal with some of the grain and nugget effect? And I'm wondering if there was any notable changes to gold recoveries or residence time when you when you introduce some of these new gold occurrences into the existing processing?

Speaker Change: The next question comes from Ralph profiti with stifel. Your line is open.

Ralph Profiti: The Grain and, and nugget effect. And I'm wondering if there was any notable changes to Gold, recoveries or residents time when you, when you introduce some of these new gold occurrences into the existing processing circuit.

Tristan Pascall: Hi Ralph. Yeah, look, all of that we're sorting through at the moment. I think what we're excited about is the exploration opportunity as part of that exploration analysis. So we've invested capital into the exploration, that is in terms of sampling. It's not big PQ drilling or diamond core drilling. This is around augers and bulk sampling because it's near surface. But it is, you know, it's not on surface, it's deep, but near surface. And as part of that exploration analysis, work has gone out to independent laboratories offsite, but onsite we've also been able to deploy a pilot plant.

Tristan Pascall: And really, in that pilot plant, we're able to move things around, change the flow sheet design in order to understand the best way to, firstly, to sample. And then really that's the focus at the moment, to understand, you know, towards the resource statement around understanding of grades and so on, along with the 7.5 kilometre strike zone. But then, yes, we put it into the existing plant. We don't see it currently as part of, you know, additional gold in, you know, for example, in our 20 this year's guidance. We don't see that impacting now, but this is much more about understanding the opportunity.

Speaker Change: Hi Ralph. Yeah, mcol of that we're sorting through at the moment I think what we we're excited about is the expiration opportunity as part of that expiration analysis. Um so we we've invested Capital into the expiration that is in terms of sampling it's not you know big PQ drilling or or Diamond core drilling. This is around August and bulk sampling because it's new Surface. Um but it is you know, it's not on Surface, it's deep. Uh but new Surface and um, you know, as part of that expiration analysis, work has gone out to Independent Laboratories offsite. But on site, we've also had a, um, been able to deploy a pilot plant, uh and really we, in that pilot plant, we able to move things around change, um, the the flow sheet design in order to understand that, the best way to firstly to sample, uh, and then, really, that's the focus of the moment to understand, um, you know, towards the resource statement around understanding your grades and so, on along the

Ralph Profiti: As soon as we have, you know, more available and towards the resource statement, we'll be able to provide that update. Great, great.

Ryan MacWilliam: And if I can switch to a quick question for Ryan, how much of an offset can we expect to the increase in the P&S and M costs that comes from selling power into the grid?

Speaker Change: The 7 and 1/2 km Strike Zone but then yes we put it into the existing plant, we don't see it currently as part of, you know, um additional gold in, you know, for example, in our 20, uh, this year's guidance. We don't see that impacting. Now, this is much more about understanding the opportunity. As soon as we have, you know, more available. And towards a resource statement, we'll be able to provide that update.

Speaker Change: Okay, okay, great, great. And if I can switch to a quick question for for Ryan,

How much of an offset can we expect, uh, to the increase in the pns and M costs that comes from selling power into the grid?

Ryan MacWilliam: Ryan, can you take that one? Sure. So, Rolf, the opportunity with running the power plant is very much about providing power to Panama more broadly. It's an opportunity to make sure the plant is working, give ourselves time to make sure the plant is working appropriately. It doesn't provide significant financial benefits. What we've seen is the power price in Panama has fallen through the course of this year as the rivers are running strongly, which is generating good hydropower. I think the current price is around $50 per megawatt hour, sorry, per megawatts. So our current expectation is running it will be broadly break-even, but it certainly has a benefit to Panama, and it also certainly has a benefit to the maintenance of the power station.

Speaker Change: Ryan, you tell me.

Speaker Change: Sure.

So off the opportunity with running the power plant is very much about providing power to Panama more broadly. It's an opportunity to make sure the plant is working. Give ourselves time to make sure the plant is working appropriately. It doesn't provide significant financial benefits but we've seen is the power price in Panama has fallen through the course of this year. As the rivers are running strongly which is generating good. Hydro power, I think current prices are around $50 per megawatt hour. So per megabytes so our current expectation is running. It will be broadly Break Even but it's only as a benefit to Panama and it also certainly has a benefit to the man maintenance of the power station.

Dalton Baretto: The next question comes from Dalton Baretto with Canaccord Genuity. Your line is open. Thanks, Alfredo. Good morning, Tristan and team.

Dalton Beretto: Next question, comes from Dalton beretto with canaccord genuity, your line is open.

Dalton Baretto: I wanted to ask a question on the audit process at Panama. You mentioned the 11th audit that's almost done now, or it's done and you're waiting for the report. Will these audits count towards the official sort of environmental audit that the government wants to see?

Dalton Beretto: Okay, thanks operator. Good morning. Chris Tristan, 19. Um I want to ask a question on the audit process at Panama. You mentioned the 11th audit. That's almost done. Now, or is done. Are you waiting for the report? Will these audits count towards the official sort of environmental audit that the government wants to see?

Tristan Pascall: Yeah, hi Dalton. Yeah, so those audits, the 10th audit and then now the 11th audit that was in June are just the regular audits that were part and parcel of the ESIA commitments at Cobra Panama and those are done by the regulator with the local consultants, environmental consultants, but also with input from international expert consultants. As to how those relate to the broad environmental audit that was announced by government as part of understanding the current status quo at the mine as a baseline for understanding, we yet to have a formal feedback on that in terms of the terms of reference or so how that overall environment audit relates to those.

Tristan Pascall: So that's information we'll wait to hear back from government. Okay, great. Thanks for that.

Speaker Change: Ya. Hi dolphin. Yeah. So those are the 10th ordered uh, and then now the 11th order that was in June just the regular, um, order that uh, were part and parcel of the esia commitments, the Cobra Panama and the, uh, those are done by the regulator with the local uh uh, Consultants environmental consultant, but also with input from the international expert, Consultants, um, the as to how those relate. Um, to the the broad environmental order that was, uh, uh, announced by government as part of understanding, the current status quo at the mine as a, as a baseline to understanding. Uh, we yet to have a formal feedback on that in terms of the terms of reference um or or so how they that overall environment or it relates to those. So that's information. You know, we we wait to hear back from government on

Dalton Baretto: And then just maybe switching gears to Taka Taka. We're less than a year away from the REGI deadline now. And, you know, I assume you're going to submit the project for REGI approval. If it does get approval, does that sort of automatically assume a final investment decision on this thing and that you're going to go forward? And can you just remind us what the quantum of spend will be over the first couple of years post-approval?

Tristan Pascall: Thank you. Sure, Dalton. So, yeah, we like Takataka.

Speaker Change: Okay, great, thanks for that. And then, just, maybe Switching gears to talk a talk up. We're less than a year away from the rigi deadline now. Um, and, you know, I assume you're going to submit, um, the project for rigi approval, if it does get approval. Does that sort of automatically assume a final investment decision on this thing and that you're going to go forward? And can you just remind us, uh, what the Quantum of spend will be of the first couple of years, post approval.

Tristan Pascall: It's a great project in terms of the opportunity there to produce some average of 250,000 tonnes of copper a year for the first 10 years, and then potentially up to beyond 32 years of mine life. Yes, RIGI is due in the first base by sort of July next year. There is a potential that it might be extended, but we're certainly working on the basis that RIGI would be due next year in July.

Tristan Pascall: There's really three key elements to our approach to Takataka. That is, number one, the RIGI application. Secondly, towards securing the environmental and water permit approvals, and those have been well underway, and we see momentum on those areas.

Tristan Pascall: And then thirdly, which is to your question around financing for that. That is a process that we'll go through. I think we'll be able to provide further updates as we go through this.

Tristan Pascall: We don't see it as being something that we're sitting here to say we will definitely make an investment or sanctioned decision in July next year, but I think we want to get the project as far advanced so that we're able to make that decision and have a solid basis in terms of engineering design, understanding the early pre-strip, which is a key component of the project, the electrical infrastructure that needs to plug in, all of those elements, and to have those all ready for that timetable. And in terms of funding, yeah, look, we will go through a process of updating the previous 43-101.

Speaker Change: Certainly working on the basis, that really would be due. Uh, next year in July, as there's really 3 key elements to, uh, our approach to tack attacker that number 1, the rigi application. Secondly, uh, towards securing the, uh, environmental and water permit, uh, uh, approvals. And those, uh, have been well underway and we, we see momentum on those areas and then thirdly, uh, which is to your question around financing, uh, for that, that is a process that will go through, uh, I think we'll be able to provide further updates. Uh, as we go through this, we, we don't see it as being, um, you know, something that, you know, we, we're sitting here to say, we will definitely make a, uh, an investment or a sanction decision in July next year. But I think we want to get the project as far as so that we're able to then make that decision and have a basis, a solid basis in terms of engineering design, uh, you know, understanding

Speaker Change: You know, the early pre strip which is a key component of the project, the electrical infrastructure that needs to plug in all of those elements. Uh, and to have those already uh, for that timetable.

Tristan Pascall: The number in that 43-101 was some $3.6 billion or thereabouts. And then the spend over the first two years would mainly be on commencing the pre-strip. That we've got to take is around three years of that pre-strip, and the first year would definitely be mainly pre-strip. And then we would see sort of the plan would be to start construction of the process in the second year.

Tristan Pascall: But I think that's a level of detail. Really, the first step is to build everything towards an investment-ready decision, but we're not standing here to say we'll be making that decision in July next year.

Speaker Change: And in terms of funding, uh, yeah, we look, we will uh, go through a process of updating, the previous 43101 the number in that in that 43101 with 73.6 billion or or thereabouts. Uh, and then the spend over the first 2 years that would mainly be on commencing the pre strip, uh, that we've got to take. It is around 3 years of that pre-strip, and the first year, would definitely be mainly free strip. And then we would see sort of the plan would be to start um, construction of, of the process plant in the second year. But I think that's a level of detail. Um, you know, really the first step is is to build everything towards um, you know,

Speaker Change: An investment. Ready decision. But we're not standing here to say. We will be making that decision uh in July next year.

Yanis: The next question comes from Yanis with Morgan Stanley. Your line is open. Yes, thanks very much for the presentation.

Speaker Change: The next question comes from Janice.

Speaker Change: With Morgan Stanley, your line is open.

Yanis: First question from my side, regarding the environmental audit at Cobra Panama, can you comment if there are any changes to the scope of the audit and what's really the stumbling block here? Because I guess you have the public consultation process concluding back in January. We're here six months later and the process hasn't started. Have you got any feedback from the government on what's driving the delay and do you have any visibility on when things could start moving? Thank you.

Tristan Pascall: Hi, Ian. Thanks for the questions. Yeah, so the environmental audit, as I said, yes, the terms of reference are currently being finalised. As far as I understand it, it's really around mechanics. So it's the government of Pakistan, the ministry environment. The public consultation period was closed. We wait to hear the feedback on that. I'm not aware of any specific impediments. We just wait to hear back from government. We do see that solid progress has been made, and we measure that in terms of outcomes on the ground. You know, the preservation and safe management plan approval during the quarter was an important milestone in terms of providing a construct.

Janice: Thanks very much for the uh, presentation. Uh, first question from my side, um, regarding the environmental order that Cobra Panama, can you comment if there are any changes to the scope of the audit and uh what's really the stumbling block here? Because I guess um you have the public consultation process concluding back in January, we're here 6 months later. In the process hasn't started. Have you got any feedback from the government on What's, um, driving the delay? And you have any visibility on where when things could start to moving? Thank you.

Speaker Change: Hi. Um, thanks for the the questions. Yeah, so the environmental audit. Um, as I said, uh, yes, the terms of reference are currently being finalized as far as they understand and it's really around mechanics inside, um, the government of the ministry environment, the public, uh, consultation period was closed, um, but we wait to hear the feedback on that. I'm not aware of any specific impediments. Uh, we just wait to hear back from government.

Tristan Pascall: legal construct for the continuing environmental stewardship and asset integrity work at the mine, but also to ship out the concentrate, as I said. We've already shipped three vessels, and the fourth vessel is loading as we speak. I think that's very solid progress. We would like to see continued progress, but we wait to hear back from the government of regards to environmental audit and indeed other elements towards long-term resolution of this issue. Very clear.

Speaker Change: We we do see that solid progress has been made and we measure that in terms of outcomes on the ground. Um, you know, the preservation of safe management plan approval, during the quarter was an important milestone in terms of providing uh, a construct

Legal construct for the continuing environmental stewardship and asset Integrity work uh at the mine. But also to to to ship out the concentrate. As I said we've already shipped, uh, 3 vessels and the 4 V is is loading as we speak. Uh, I think that's very solid progress. Um, we would like to see continued progress, um uh but we we wait to hear back from the uh the government of Panama in regards to the environmental audit and indeed you know, other elements um you know towards long-term resolution of this issue.

Tristan Pascall: Thank you for that.

Tristan Pascall: And the follow-up is on a clarification on the start-up time that you mentioned will be around six to nine months after you get a restart agreement in place. Does it assume getting to 100% of throughput capacity? And if not, what would be the additional time to get there? Thanks, Ian. No, I don't think we'll get to 100% at 100 million tons in six to nine months. Look, we would also need to go through, you know, it's very important to say we're taking this step by step and we await, you know, government feedback. For example, the President's message that the table was now open for dialogue.

Very clear. Thank you for that. And the follow-up is on a clarification on the startup time that you mentioned. I will be around 6 to 9 months after you get uh, uh, restart agreement in place. Does it assume getting to, uh, 100% of, uh, throughput capacity and and if not what would be the additional uh time to get there?

Tristan Pascall: So, but we're working through that step by step. You know, looking forward, if we were to get into a start-up mode, if that's what comes, is we will need to conduct, in our view, you know, a lot of inspection work to really get to grips and understand the situation there related to the asset. Yes, we've been maintaining, you know, large critical infrastructure very well. I was on site just a few weeks ago and we walked down, for example, the conveyors for reloading of the ships and that was in very good condition. And, you know, the main, the mills, the grope shovels, electric drills, mine fleets are all in very good condition.

Tristan Pascall: But there are elements where, you know, some work needs to be done, but we'll go through that in an inspection regime and that will ultimately tell us, you know, the timeframe for restart and ramp-up. You know, ultimately, we would hope that sort of six to nine months in duration, but then the optimisation to get to 100% throughput will take, you know, longer. That's an incremental effort. You need every system, every person on site, all running as a finely-tuned team and a finely-tuned machine in order to get to that optimised output and that will take longer.

Speaker Change: We will need to conduct in our view. A, you know, a lot of inspection work to really get to grips and understand, um, the situation their related to the asset. Yes, we've been maintaining, um, you know, large critical infrastructure very well. I was on site just a few weeks ago and we walked down for example, the conveyors for reloading of the um of the ships. And you know, that was in very good condition and you know, the main, the Mills, the um, throat shovels, electric drills, mine Fleet oh and very good condition, but they are elements where, you know, some work needs to be done, but we'll go through that in an inspection regime and that will ultimately tell us, um, you know, the the the time frame for restart and ramp up, uh, you know, ultimately, we would hope that sort of 6 to 9 months in duration, but then the optimization to get to 100% throughput will take uh, you know, longer that's a an incremental effort. Uh you need every system every uh person on site or running as a finely tuned team and and a finally machine and

Speaker Change: Orders, get to that that optimized output and that will take longer.

Marcio Farid: The next question comes from Marcio Farid with Goldman Sachs. Your line is open. Thank you. Morning, Tristan and team. There's obviously a lot of expectations for Trident in the second half of the year. We understand there was a lot of maintenance downtimes and the issues with the ball mill fatigue as well.

Speaker Change: Next question.

Comes from Marcio for red.

Speaker Change: Your line is open.

Rudi Badenhorst: Can you just talk a little bit about the work that has been done so far and your confidence for getting to the target for the full year into the second half, please? Thank you. Hi, Marcio. Yeah, thanks for the question.

Speaker Change: Thank you morning T. Um there's obviously a lot of expectations for Trident in the second half of the year. Uh we understand um there was a lot of Maintenance down times and the issues with the ball mu fatigue as well. Can you just talk a little bit about the work that has been done so far and your confidence for getting to the Target for the full year um into the second half please.

Speaker Change: Thank you.

Rudi Badenhorst: Rudi, do you want to take that one? Thank you, and thanks. And that's it. During the last quarter, we finalized creative intervention with the OAM for the Baltimore. And that primarily leads to a conclusion on those measures that need to be taken. Take the train to Bournemouth down in quarter one next year and the reason we're delaying that is to align The downtime legacy for the repairs to be done to them all. with a total plant, a total plant shot. and also with the upgrade to the training signal feed wells that we've reported on earlier in the year that needs to be upgraded in order to accommodate the additional tonnage that Sentinel is producing.

Rudy Bannon: Hi, Matthew. Yeah, thanks for the question. Rudy, do you want to take that 1?

Rudy Bannon: Thanks.

Speaker Change: How about you?

Speaker Change: doing the the uh, last quarter, we finally lost credits of intervention with the OEM for the ball, more

Speaker Change: And so that finally reached the conclusion on on, on those measures that need to be taken. So we will

Speaker Change: Take the time to go more down in quarter, 1 next year. And the reason we designed that is to align

Speaker Change: The downtime and Legacy for repairs to be done to them all with a total a plan to to plant shot.

Speaker Change: and also with the upgrade to the training Sigma feed Wells that we've reported on earlier

in the year that it needs to be upgraded in order to

Rudi Badenhorst: Quarter of a quarter has increased their throughput and they're getting very close to the 62 million tonne per annum throughput rate, much higher than the original design. So we'll just take advantage in Q1 next year with the upgrades on the tailings thickness to do the mole at the same time and therefore reduce any sort of production impact that would possibly occur at that time. That obviously then means that we delay any maintenance on the mole this second half of the year and we therefore don't expect any real impact on the guidance that you've already provided.

Speaker Change: accommodate the additional Furniture, can that Saint analyst is producing, you know, since you know

Speaker Change: Course of a quarter has increased their throughput and they're getting very close to the 62 million tons and 3 plus rides much higher than the original design.

Speaker Change: So, we'll just take advantage in q1 next year. With the upgrades on the tailings, thickness to do the mole at the same time and therefore, reduce any sort of production impact, um, that would possibly occur at that time.

Speaker Change: That obviously then means that we delay any maintenance on on the mole, this second half of the year. I mean, the therefore don't expect any of your impact.

On the guidance that you've already provided.

Rudi Badenhorst: Okay, that's great.

Ryan MacWilliam: And maybe a follow-up to Ryan. Ryan, obviously, the prepayment in the second quarter, now with the gold heads, and I think the copper heads has been worked quite well.

Ryan MacWilliam: Anything else you want to do on the balance sheet as we move into next year, without needing to count on Cobre Planamar restarting? Thank you. Yeah, hi. Yeah, go ahead, Ryan. Hi, Anna. So the short answer is there's nothing else we have to do and we've put ourselves in a position because of the strong initiatives around hedging, around the prepays, around the access to the bond market earlier in the year where there's nothing we need to do through the balance of the year. But that's not to say we're sitting idle, you know, we're working hard to make sure we assess what the different options are ahead of us.

Speaker Change: See, that's great. And and maybe a follow up to, to Ryan Ryan, um, probably the prepayments in the second in the second quarter. Uh, now if the gold heads and I think the Copperheads has been worked quite well, anything else you want to do on the balance sheet as we move into into next year without needing to count on COBRA Panama restarting

Speaker Change: Thank you. Yeah. Hi.

Ron: Yeah. Go ahead. Ron

Speaker Change: hi, Annis

Ryan MacWilliam: We've mentioned additional gold prepays, we've mentioned streams, you know, we've historically talked about minority stake sales.

Ryan MacWilliam: And the goal for us is to advance all of those to a point at which we have optionality and when you have that optionality it's really by putting each of them side by side and saying what makes the most financial sense, what makes the most strategic sense and we'll continue to do that through the balance of this year and if any of them gets to the point where we think they really help move us and our balance sheet forward, we'll execute on those. But certainly we're not in a position where we have to do any of them through 2025.

So the short answer is there's nothing else we have to do and we put ourselves in a position because of the strong uh initiatives around hedging around the prepays around the access to the bond market earlier in the year where there's nothing we need to do through the balance of the year but that's not to say we're sitting idle you know we're working hard to make sure we assess what the different options are ahead of us. We've mentioned additional gold, prepays. We've mentioned the streams. You know, we've historically talked about minority Stakes sales and the goal for us is to advance all of those to a point at which we have optionality. And when you have that optionality, it's really by putting each of them side by side and saying what makes the most Financial sense, what makes the most strategic sense and we'll continue to do that through the balance of this year. And if any of them gets to the point where we think they really help move us and our balance sheet forward, we'll we'll execute on those. But certainly we're not in a position where we have to do any of them through through 2025.

Christopher LaFemina: The next question comes from Chris LaFemina with Jeffreys. Your line is open. Thank you. Hi, Tristan, Ryan, and team. Thanks for taking my questions.

Speaker Change: The next question comes from Chris lemina with Jeffrey's. Your line is open.

Christopher LaFemina: So I want to ask about scenarios for Panama. If in the downside scenario, where you can't come to an agreement with the government and potentially would renew the arbitration proceedings, how would that work? And would the arbitration timeline go back to the beginning? And does it kind of push back? Like, yeah, when would the hearings take place? Would this be a multi-year process before you would be able to make progress? I mean, obviously, it's not your goal to go down that path again. But if that were the case, how would that process proceed?

Taking my questions. So, I want to ask about, uh, kind of scenarios for for Panama, if in the downside scenario where you can come to an agreement with the government and potentially, would renew, uh, the arbitration proceedings. How would that work? And with the arbitration timeline, go back to the beginning and does it kind of push back? Like yeah, when would he when would the hearings take place? Would this be a multi-year process before you were able to make progress? I mean, obviously, it's not your

Goal to go down that path again. But if that were the case, how would that would that process proceed?

Tristan Pascall: Yeah, hi Chris. Thanks for that question. Yeah, look, it's important to say arbitration is not our preferred outcome here. We want to be constructive and we want to see resolution on this matter. We think it's very important for the country of Panama and, you know, our employees, our local suppliers in country and for the broader Panamanian population. And I think that's well understood in the country. At least that's what we see in terms of polling. But look, all our rights remain protected in the long term in terms of the suspension, the arbitration. It's just a suspension and that we would have resort back to the FTA process and we would just follow that process.

Chris: Yeah. Hi Chris. Uh,

Tristan Pascall: Okay, so things would just pick up where they left off, basically. Yeah, it would just Suspended, and then it would just be unsuspended, and we'd pick up back. Okay. And then in the scenario where it comes back online in middle of next year, let's say, as an example, with the balance sheet, you've been playing defense very effectively in terms of maintaining or reducing net debt. But, you know, when the mine comes back online, obviously, you can start playing offense again. And, you know, obviously, you have a pretty substantial organic growth pipeline. There's only so much you could do to accelerate that.

Speaker Change: thanks for that question. Yeah, look, it's important to say. Arbitration is not our preferred outcome here we we, we want to be constructive, and we want to see resolution on this matter. Uh, we think it's very important for the country of Panama and, uh, you know, our employees, our local suppliers in country. Uh, and for the, the, the broader Panamanian population, and I think that that's well, understood in the country, at least that's what we see in terms of polling. Um, but look all our our our rights remain protected in the long term. In terms of the suspension, the arbitration. It's just a suspension. Um, and that we would have Resort back to the FDA process and we would just follow that process. Uh,

Speaker Change: Okay, so it would things would just pick up where they left off. Basically.

Ryan MacWilliam: But how would you manage the balance sheet in the event that Copa Panama is back online? Is it about continuing to delever, or do you start to look for opportunities in the market? Do you start to potentially buy back stock at the current price? And how would the financial kind of capital allocation strategy change after the mine comes online? Thank you. Sure, Chris. Ryan, do you want to take that question? Hi Chris, we really moved back to where we were before Cobra Panama closed down and that was we said our principal goal will be around deleveraging.

Speaker Change: Yeah, it would just suspended and then it would just be able to send it and we pick up back. Um, okay. And then in the scenario where uh it comes back online in middle of next year, let's say as an example, your your, with the balance sheet, you've been playing defense, very effectively in terms of maintaining or reducing net debt. Uh but you know, when the Mind comes back online, obviously you can start playing offense again and you know, obviously have a pretty substantial organic growth pipeline. There's only so much you can do to accelerate that, but how would you manage the balance sheet in the event that Cobra Panama must back online? Is it about continuing to deliver? Or do you start to look for opportunities in the market? Do you start to potentially buy back stock at the current price? And how, how would the financial kind of capital allocation strategy change after the line comes online? Thank you.

Speaker Change: Sure. Chris Ryan do you want to take that question?

Ryan MacWilliam: So we're at 3.3 times net debt to EBITDA at the moment and what we said we want to be before building the next project is closer to one times net debt to EBITDA. So we have made progress, clearly a restart of Cobra Panama would result in significant further progress, noting Tristan's caution that we've got to take it one step at a time. But, you know, if we find ourselves in that position, the goal is not to get carried away. Do what we said we would do, which is focus on deleveraging, reducing debt, and clearly the best way to reduce debt is from strong operational cash flows, and the inflection point at Kinshanshi with S3 coming online presents a really strong opportunity there, and if we do make progress in Panama, that would be another potential real tailwind in that respect.

Chris Ryan: Hi, Chris. We really moved back to where we were before Co Panama closed down, and that was, we said, our principal goal will be around deleveraging. So we're at 3.3 times. Net debt to EBA at the moment and what we said, we want to be before building. The next project is a closer to 1 times net debt, but does so we have made progress. Clearly at a restart of Cobra Panama would result in significant further progress noting Tristan's caution that we got to take it 1 Step At A, at a time.

Chris Ryan: But, you know, if we find ourselves in that position, the goal is not to get carried away.

Do what we said we would do, which is focus on deleveraging, reducing debt. And clearly the best way to reduce debt is from strong, operational cash flows. And the inflection point at cannae with S3 coming online, presents, a really strong opportunity there, you know, and if we do make progress in Panama, that would be another potential real Tailwind in that respect.

Myles Allsop: The next question comes from Myles Allsop with UBS. Your line is open. Great, yeah, just a couple of quick questions, maybe one for Ryan on hedging. Should we assume that it's done now, unless there is a delay to the ramp-up of S3? You're broadly 50% hedged, whether you look at copper or gold, out to mid-2026.

Chris Ryan: The next question.

Is from Mi Al.

Chris Ryan: Great. Uh yeah. Just a couple of quick questions, maybe 1 for, for Ryan on the hedging, should we assume that it's done now? Unless there is a delay to the ramp up of S3 you you're broadly 50% hedged, whether you look at Copper or gold out to Mid 2026.

Ryan MacWilliam: Thanks Myles, do you want to take that Ryan? Sure, hi Myles. So yeah, we're pleased with the hedge book we have in place, both in terms of the volumes, noting close to 60% copper this year, dropping down to around 40% next year, similar for Both of those hedges have been put in at good prices. We will evaluate as we go, quarter to quarter. So as we sit here today, we're not putting in additional hedges beyond H1 next year, but that decision whether or not to extend hedges is going to be us evaluating where the copper price goes to, and therefore our balance sheet will be watching S3 ramp up and we'll be seeing how we progress in Panama.

Speaker Change: Thanks miles. Do you want to take that Ron?

Sure. Hi miles. See how we're pleased with the Hedge book? We have in place both in terms of the volumes noting close to 60% copper this year. Dropping down to around 40% next year, similar for gold. Both of those Hedges have been put in at at good prices. Um, we will evaluate as we go according to quarter, so as we sit here today, we're not putting in additional Hedges Beyond H1 next year, but that decision whether or not to extend Hedges is going to be us evaluating where the copper price goes to and

Ryan MacWilliam: So no intent as we currently sit here today, but that's also not to say the hedging program in and of itself has ended. Our long-term goal is to be unhedged. But as I noted to Chris's earlier question, you know, we still have a way to go on deleveraging, which is why we continue to think of hedging as a valuable tool. We'll continue to consider through the balance of this year.

Speaker Change: Therefore our balance sheet will be watching S3 ramp up uh and I'll be seeing how we progress in Panama, so no intent as we currently sit here today. But that's also not to say the hedging program in and of itself is has ended. You know, our long-term goal is to be unhedged.

Speaker Change: But as I noted to Chris's earlier question, you know, we still have a way to go and deleveraging, which is why we continue to think of hedging. As, as a valuable tool, we continue to consider through through the balance of this year.

Myles Allsop: Maybe on the Zambian steak sale, should we...

Ryan MacWilliam: Basically, think that off the table until you find this new goal. Is that the right way of thinking?

Speaker Change: Maybe on the zambians state sale, should we? Um,

Speaker Change: You got the right way of thinking.

Ryan MacWilliam: Brian, do you want to follow up on that? Yeah, hi Myles. Certainly, as Tristan said, we're excited about the new gold opportunity, but he also cautioned that it's early. And whenever you have an exciting but early opportunity, that can make it challenging to agree valuations around an asset, because it takes time to quantify what the size of the opportunity is, therefore what the value of the opportunity is, and therefore how that gets priced into a transaction. So that certainly does plant our thinking around options for the Zambian business from a balance sheet perspective, and we're fortunate that as that has developed, so the gold prices remain strong, which means we've got multiple options there we can now consider, whether that be prepays, streams, or other instruments.

Speaker Change: Brian, can you follow up on that?

Ryan MacWilliam: So something we're continuing to think hard about, but where both the market and the development of Kansanshi has got to, certainly gives us strong options for the balance of this year.

Myles Allsop: Maybe one very last question on TakaTaka, just following up from the previous question. Should we assume that will only get approved with a different ownership structure that you would kind of syndicate down the risk for that project given recent years and challenges you've had? Hi Myles, we, look, TakaTaka, the three main work streams I said there were on the rigging, on the environmental and water permitting, and then on that financing side of things. We've said previously that we're open to navigate that financing pathway, to bring in partners.

Speaker Change: Yeah, hi Ms. Yeah, certainly as Tristan said, we're excited about the new gold opportunity, but he also cautioned that it's early and whenever you have an exciting but early opportunity that can make a challenging to agree, valuations rather than asset, because it takes time to quantify what the size of the opportunity is therefore what the value of the opportunity is and and therefore how that gets priced into a transaction. So that certainly does plant, our thinking around options for the Zambian business, from balance sheet perspective, and we're fortunate that as that is developed. So the gold prices remained strong, which means we've got multiple options there. We can now consider, whether that be prepaid streams, uh, or other instruments. So something we continuing to think hard about, um, but where that, both the market and the development of Ken sanchi has got to certainly gives us strong options balance of this year.

Yeah, maybe 1 1 1, very last question. On tack attack is following up from the previous question and should we assume that will only get approved with a different ownership structure? That you would kind of Syndicate down the risk for that project given, uh, recent years and challenges you've had

Tristan Pascall: We think the partnership is a good model, and you know, for example, we have been looking at, to your previous question, in Zambia, partnership is how we're looking at La Granja in Peru, with Rio Tinto, which is a great project to develop with another very capable mining company, and you know, indeed, Cobra Panama have partners in terms of ownership out of Korea. You know, so we see that as a good model for Argentina, but you know, exactly how that looks like and will be structured, we'll just work that through over the course of the coming period.

Speaker Change: Hi Mark. We look Tech attacker as the sort of 3 main work streams. I said there were on on the rigi, on the environmental and um, water permitting. And then on that financing side of things we've said, um, previously that we, we're open to to navigate that financing pathway. Um, you know, to bring in Partners, we think the partnership is is a good model. Um, and you know, for example, we have been looking at to your, your previous question in Zambia partnership is is is how we're looking at Lerona in Peru, um, with Rio Tinto. We that's a great project to develop uh with another very capable uh Mining Company. Uh and you know indeed Cobra Panama had Partners in terms of ownership out of Korea. Um uh you know so we see that as a good model for Argentina. Um but you know exactly how that looks like and and will be structured, we'll just work that through, um, over the course of of, of the

Speaker Change: Coming period.

Operator: Operator, we're coming on to the hour, so we'll just take one more question. Thank you. Your last question comes from Ian Rossouw with Barclays. Your line is open. Thanks. Just a follow-up on the balance sheet, Ryan, just where you mentioned around the options on a gold prepay or streams and how that fits into TakaTaka and the balance sheet. streams and prepays don't really address the balance sheet leverage, it just increases liquidity.

Operator. Uh, we're coming up.

Speaker Change: A question. Thank you.

Speaker Change: Thank you. Your last question comes from Ian, Russell with Barkley's. Your line is open.

Speaker Change: Thanks. Um, just a follow-up on, on the balance sheet. Um, Ryan just where you mentioned, um, around the options on the gold, prepay or streams, um, and how that fits into Taka Taka and the balance sheet, um, obviously,

Ian Rossouw: So do you then think a minority stake sale or potentially bringing in partners for funding for Takataka is then required to get into the timelines for the riggy that Tristan mentioned? And then secondly, just a quick one on Panama. I see the KPMC stake was diluted. Could you maybe just provide a bit of color there? Thank you.

Speaker Change: You streams and prepaids don't really address. The balance sheet. Leverage is just uh um, increases liquidity. So do you then think

Speaker Change: Um a minority stake sale or potentially bringing in partners for funding for Toca. Toca is is then required or um,

to get into the, the timelines for the Ricky, um, that Tristan mentioned

Speaker Change: Um and then secondly just a a quick 1 on on Panama. I see the kpmc stake was diluted. Could you maybe just provide a bit of color there?

Ryan MacWilliam: Ryan, could you take both of those? Sure. Hi, Ian. So on TakaTaka, Tristan mentioned we're going to explore a variety of options. We're not going to be as definitive to say for sure the ownership structure is going to change before we move forward with TakaTaka, but we can be definitive in saying we will explore partnership, we will explore streams, we will explore project finances. And the fact that it's a tremendous asset means we will have good options there. But it's too early to say where the exploring of those options will lead to in terms of what the ultimate structure is for TakaTaka.

Thank you.

Speaker Change: Ryan, could you take both of those?

Ryan MacWilliam: The way Rigi is structured, as Tristan noted, you've got until June next year to apply. And in the subsequent two years, you need to meet the 40% of the $200 million to qualify for Rigi. So there's an $80 million which you need to spend that or above in the subsequent two years. So we think there are a variety of options to fund that on the basis that we apply for Rigi before mid-next year. That said, it's early days and now we're in the exploring options phase from a financial perspective.

Tucker Taco: Sure. Hi am. So I'm Tucker Taco. Tristan mentioned, we're going to explore a variety of options. We're not going to be as definitive to say, for sure. The ownership structure is going to change before we move forward with Tucker Tucker, but we can be definitive in saying we will explore partnership, we will explore streams. We will explore project finances, and the fact that it's a tremendous asset means it will, we will have good options there. Um, but it's too early to say where the exploring of those options will lead to in terms of what the ultimate structure is. Um, for for Tucker Tucker, the way rigi is structured as Tristan noted. You've got till June next year to apply.

Ryan MacWilliam: On KPMC, so as you know, we hold a 90% stake in Cobra Panama. 80% of that is direct and 10% of that is indirect through a vehicle called KPMC. The other owner of KPMC is Comia, a Korean government parastatal. So they hold a 10% stake in Cobra Panama. The Korean government has said they are not in a position while Cobra Panama is offline to fund the PSM program. So as a result, we've been sole funding that. Because of that, that's then resulted in a dilution of their stakes. So we've moved from a 90% stake to a 91% stake.

Tucker Taco: And in the subsequent 2 years, you need to meet the 40% of the 20 million dollars to qualify for rigi. So there's an eighty million dollar which you need to spend that or above in the subsequent 2 years. Um, so we we think there are a variety of options to fund that on the basis that we apply for rigi before mid next year. That said it's early days, um, and we're now we're in say exploring options phase from a financial perspective.

Tucker Taco: On kpmc. So as you know, we hold a 90% stake in Cobra Panama 80% of, that is direct and 10% of. That is indirect through a vehicle called kpmc, the other owner of kpmc is Kia, Korean government Paris datal. So they hold a 10% stake in Cobra Panama.

Ryan MacWilliam: I would note that hasn't prevented very constructive engagement between us and them. We feel they've been good partners as we work through this challenging time in Panama. And I think what they, like us, really look for is good resolution in Panama for ourselves, but also particularly for Panama more broadly. But in terms of the financing and dilution mechanics, that's how it's played out.

Tucker Taco: The Korean government has said they are not in a position while Cobra Panama is offline to fund the PSM program. So as a result we've been sold funding that because of that, that's then resulted in a dilution of their stake. So we've moved from a 90% stake to a 91% stake.

Tucker Taco: I would note that hasn't prevented very constructive engagement between us and them, you know, they've been good partners as we work through the challenging time in Panama and I think what they like us really look for is good resolution and Panama for ourselves but also particularly for Panama more broadly. But in terms of the fin, the financing and dilution mechanics, that's how it's played out in.

Tristan Pascall: That is all the time we have for questions. I will now turn the call to Tristan Pascall for closing remarks. Thanks Operator. I'd like to thank everybody for joining the call today and for your interest and time and I look forward to seeing some of you for our Zambian Analysts and Investors tour in September. Thanks everyone. This concludes today's conference call. Thank you for joining. You may now disconnect.

Speaker Change: The time we have for questions, I will now turn the call to Tristan. Tristan Pascal for closing remarks.

Tristan Pascal: Thanks operator.

Tristan Pascal: Uh, I'd like to thank everybody for joining the call today and for your interest in time, uh, and I look forward to seeing some of you for our Zambian analysts and investor tour in September. Thanks everyone.

Tristan Pascal: This concludes today's conference call.

Speaker Change: you may now disconnect