Q2 2025 Endeavour Mining PLC Earnings Call

Good day, and thank you for standing by. Welcome to Endeavors mining second quarter 2025 results webcast.

At this time, all participants are in a listen-only mode.

After Management's, presentation, that will be a question and answer session. So for those who wish to ask a question, please dial in to the phone line.

Please note that due to time constraints, we will be prioritizing questions from the covering analysts.

Ian Cockerill: Hello, everyone, and welcome to ENDEAVOUR's second quarter and half-year 2025 results webcast. Before we start, please note our usual disclaimer. On the call today, I'm delighted to be joined by Ian Cockerill, Chief Executive Officer; Guy Young, Chief Financial Officer; and Djaria Traore, Executive Vice President of Operations and ESG. Today's call will follow our usual format. Ian will first go through the highlights, Guy will present the financials, and Djaria will walk you through our operating results by mine before handing back to Ian for his closing remarks. We'll then open the line up for questions. With that, I will now hand over to Ian.

Today's conference call is being recorded, and a transcript of the call will be available on Endeavour's website. I would now like to hand the call over to Endeavour's Vice President of Investor Relations, Jack Garman. Please, go ahead, sir.

Hello everyone and welcome to Endeavour's second quarter and half year 2025 results webcast.

Our usual disclaimer.

On the call today, I'm delighted to be joined by Ian cochrell chief executive officer. Guy, young Chief, Financial Officer and jaria trayor, Executive Vice President of Operations and ESG.

Today's call will follow our usual format. Ian will first go through the highlights guy will present the financials and jaria will walk you through our operating results by mine before handing back to Ian face closing remarks.

We'll then open the line up for questions.

Jack Garman: Thank you, Jack, and hello to everyone who's on the call today. I'm very proud to say that, as previously guided, we've delivered another good quarter to cap off the strong first half, firmly underpinned by a sound safety performance. In the H1 this year, we produced 647,000 ounces of gold at an average all-in sustaining cost of $1,281 per ounce, which firmly places us on track to achieve our full-year guidance. And I think to put that production in context on a like-for-like basis year on year, so in other words, excluding the influence of Lafigue's production, this year's H1 production is a 16% improvement in throughput year on year. Our organic growth pipeline continues to advance, and our Tier 1 Assifu project's definitive feasibility study remains on track for completion by early '26.

With that, I want to hand over to Ian.

Thank you, Jack and hello to everyone. Who's on the call today.

I'm very proud to say that as previously guided we've delivered another good quarter to cap off the strong. First half, firmly underpinned by a sound safety performance.

In the H1. This year, we produce 647,000 oz of gold at an average all-in, sustaining cost of 1,281 per ounce.

Which firmly places us on track to achieve our full year guidance and I think to put that production in context on a like for like basis year on year. So in other words, excluding the influence of LA's production. This year's H1 production is a 16% Improvement in throughput year on year.

Jack Garman: At the same time, we're making good progress with the environmental and exploitation permits as well. Our exploration program is advancing several exciting greenfield and brownfields opportunities across the portfolio, including at ITI, where the ITI train continues to deliver new greenfields discovery, and pleasingly, at Sabadal Masawa, where we are delineating a high-grade near mine opportunity to support our mine plan. On the financial side, we have continued to increase free cash flow generation, delivering $514 million of free cash flow in H1, and that's equivalent to $794 for every ounce that we've produced. This improved free cash flow generation has allowed us to maintain a healthy balance sheet and, as previously guided, despite paying approximately 70% of our 2025 tax bill in the first half of this year.

Our organic growth pipeline continues to advance and our Tier 1. Asafu projects definitive feasibility. Study remains on track for completion by early 26. At the same time, we're making good progress with the environmental and exploitation permits as well.

Our expiration program is advancing several exciting greenfield and brownfields opportunities across the portfolio, including editi, where the ETI trend continues to deliver, new greenfields, discovery, and pleasingly at Salvador Misawa, where we are delineating a high-grade near-mine opportunity to support our online plan.

On the financial side we have continued to increase free cash flow generation delivering 514 million dollars of free cash flow in H1 and that's equivalent to 794 for every ounce that we've produced.

Jack Garman: Our leverage is also well below our 0.5 times target and positions us comfortably for future growth and enhanced shareholder returns. We've announced a record first half dividend of $150 million that we've supplemented with $69 million of share buybacks. That's bringing total shareholder return for the first half of 2025 to $219 million. On an annualized basis, that's approximately 95% above our minimum commitment and is equivalent to a return of $338 per ounce of gold produced in H1. And I think this reiterates our commitment to delivering sector-leading returns to our shareholders. So as you can see, we've carried the strong momentum that we've been building since the completion of our growth phase through the second quarter and rounding off a strong first half of the year. On the next slide, you can see our performance so far this year.

This improved free cash flow generation has allowed us to maintain a healthy balance sheet and as previously guided despite paying approximately 70% of our 2025 tax bill, in the first half of this year.

A Leverage is also well below our 0.5 times, Target, and positions us comfortably for future growth. And enhanced shelter returns.

We've announced a record first, half dividend of 150 million that we supplemented with 69 million of share BuyBacks. That's bringing total, share return for the first half of 2025, to 219 million on an annualized basis. That's a proximately 95% above our minimum commitment and the equivalent to return a 338 per ounce of gold produced in H1. And I think this reiterates our commitment to delivering sector leading returns to our shoulders.

So as you can see, we've carried the strong momentum that we've been building since the completion of our growth phase through the second quarter, and rounding off a strong first half of the year.

Jack Garman: We've maintained a low lost time injury frequency rate, significantly below the industry average, and we continue to strive for zero harm. Operationally, we delivered 58% of the lower end of our production guidance range during the first half, and that positions us well to achieve full-year production guidance, with slightly lower production expected in the second half due to rainy seasons in Q3 and planned mined lower grades at both ITI as well as at Funday. Importantly, in the first half of the year, we maintained a low all-in sustaining cost of $1,281 per ounce, close to the midpoint of our full-year guidance range. And that's despite the impact of higher gold prices and their influence on royalty costs. In fact, the increased royalty cost was approximately $96 per ounce additional over our budgeted cost in the first half.

On the next slide, you can see our performance. So far this year, we've maintained a low lost time injury frequency rate, significantly below the industry average, and we continue to strive for zero harm.

Operationally, we do this 58% of the lower end of our production guidance range during the first half and that positions as well to achieve full-year production, Guidance with slightly lower production expected in the second half due to rainy seasons in Q3 and planned, uh, mind lower grades at both ity, as well as the fund day.

Jack Garman: On slide eight, our higher first half production was coupled with a significant 31% increase in our all-in sustaining margin, which reflects our cost discipline in this higher gold price environment. The improvement in both our production and margins is a result of the successful completion of our growth phase in early H2, 2024. And with our larger, higher margin portfolio, we're well positioned to take advantage of a favorable gold price environment going forwards. On slide nine, you can see our all-in sustaining costs compared to our sector peers, and we remain in the first cost quartile. Over the longer term, while we expect to see the industry all-in sustaining costs increase, we will continue to focus on productivity initiatives and the discovery and development of our low-cost pipeline projects to help offset any potential cost increases.

Importantly in the first half of the year, we maintained a low all-in sustaining cost of 1281 per ounce close to the midpoint of our full year guidance range and that's despite the impact of higher gold prices and their influence on royalty costs. In fact, the increased royalty cost was approximately 96 dollars per ounce additional over. Our budgeted cost in the first half.

You know, all in sustaining margin which reflects our cost discipline in this higher goal, price environment.

The Improvement in both our production and margins is a result of the successful completion of our growth phase in early H2 2024.

And with our larger higher margin portfolio, we're well positioned to take advantage of the favorable gold price environment going forwards.

On slide 9, you can see our all-in sustaining costs compared to our sector peers, and we remain in the first cost quartile.

Jack Garman: On slide 10, our stronger first half production and our cost discipline, coupled with a strong gold price, translated into a 35% increase in adjusted EBITDA to nearly $1.2 billion compared to the second half of 2024. Our adjusted EBITDA margin also increased by five percentage points to a very healthy 57%. Importantly, our improved production and earnings are also translating into stronger free cash flow, as you can see on slide 11. For the first half of the year, we generated over half a billion dollars of free cash flow, a 41% increase on H2 '24, and a significant improvement on H1 '24 when we were still in that construction phase and generating negative free cash flow.

Over the longer term while we expect to see the industry all in sustaining costs increase, we will continue to focus on productivity initiatives and the discovery and development of our low-cost pipeline projects to help offset any potential cost increases.

Stronger first half production and cost discipline, coupled with a strong gold price translated into a 35% increase in adjusted EBITDA to nearly $1 2 billion.

Compared to the second half of 2024.

Our adjusted EBITDA margin also increased by five percentage points to a very healthy 57%.

Importantly.

Our improved production and earnings is also translating stronger free cash flow as you can see on slide 11.

For the first half of the year, we generated over half a billion dollars.

Our free cash flow.

41% increase on age to 24, and a significant improvement on H 124, when we were still in that construction phase and generating negative free cash flow.

Jack Garman: On a per-ounce basis, our H1 '25 free cash flow is equivalent to $794 of free cash flow generated for every ounce of gold produced, highlighting the quality of the underlying portfolio and our ability to convert operational performance into free cash flow at a healthy margin. And that's particularly impressive because during the first half of the year, as previously guided, we also paid approximately 70% of our expected 2025 cash taxes. With a robust second half operational performance, coupled with even higher gold prices at the start of the third quarter, we expect continued strong free cash flows going forward. This chart here really illustrates our transition from a growth phase in the third quarter of '24 to a period focused on cash flow harvesting.

On a per ounce basis.

125 free cash flow is equivalent to $794 of free cash flow generated for every ounce of gold produced highlighting the quality at the underlying portfolio and our ability to convert operational performance into free cash flow at a healthy margin.

And that is particularly impressive because during the first half of the year as previously guided we also paid approximately 70% of earnings.

Expected 2025 cash taxes.

We have a robust second half operational performance, coupled with even high gold prices at the start of the third quarter. We expect continued strong free cash flows going forward.

This chart here really illustrates our transition from a growth phase in the third quarter of 2004 to a period focus on cash flow harvesting.

Jack Garman: Over the last 12 months since completing that growth phase, we've now generated $879 million in free cash flow, equivalent to $687 of free cash flow for every ounce of gold that we've produced. That's a very attractive free cash flow yield of 17% from the start of the period. And as we look forward, a robust operating outlook with cost discipline should underpin continued strong free cash flow generation. On slide 12, the strong free cash flow generation has allowed us to strengthen our balance sheet and reduce our leverage to 0.23 times net debt to adjusted EBITDA, significantly below our target of 0.5 times very quickly. Our net debt ended the period at $469 million, a significant improvement on our year-end debt of $732 million. And that's despite our big shareholder return payments, coupled with seasonally high taxes that have also been paid.

Over the last 12 months since completion that growth phase, we've now generated $879 million.

And free cash flow equivalent to $687 of free cash flow for every ounce of gold that we produced.

That's a very attractive free cash flow yield of 17% from the start of the period and as you look forward a robust operating outlook with cost discipline should underpin continued strong free cash flow generation.

On slide 12.

Strong free cash flow generation has allowed us to strengthen our balance sheet and reduce our leverage to <unk> two three times net debt to adjusted EBITDA.

Significantly below our target of <unk> five times very quickly.

Our net debt ended the period at $469 million.

A significant improvement on a year end debt at $732 million and that's despite a big shareholder return payments, coupled with seasonally high Texas that are also being paid.

Jack Garman: We were pleased to materially strengthen and extend the maturity profile of our capital structure during this period through the successful bond refinancing, which we completed in May, and the subsequent repayment of the majority of our higher cost RCF, which Guy will speak to shortly. On slide 13, given our strong free cash flow, which has deleveraged our financial position, we have continued to prioritize shareholder returns. I'm delighted to announce our record first half dividend of $150 million in cash, which we've supplemented with a further $69 million of share buybacks, bringing total shareholder returns for the first half of the year to $219 million. And just putting that in context, that's approximately 11% of our revenue, 29% of our operating cash flow, or 43% of our free cash flow.

We were pleased to materially strengthen and extend the maturity profile of our capital structure. During this period through a successful bond refinancing, which we completed in may and the subsequent repayments as the majority of our higher cost of Rcs, which John will speak to shortly.

On slide 13, given our strong free cash flow, which is.

Deleverage our financial position, we have continued to prioritize shareholder returns.

Delighted to announce.

Our record first half dividend of a $150 million in cash, which we supplemented with a further $69 million of share buybacks, bringing total shareholder returns for the first half of the year to $219 million.

Just putting that in context, that's approximately 11% of our revenue 29% of our operating cash flow or 43% of our free cash flow.

Jack Garman: And for the first half, we generated $794 per ounce of free cash flow and returned $338 per ounce to shareholders, reflecting our commitment again to delivering enhanced shareholder returns in these higher gold price environments. Our first half shareholder returns bring total returns over the last four and a half years to $1.4 billion, and that's 81% above our minimum commitment for that period. And that reflects our commitment to supplemental returns through phases of growth and cash flow harvesting, reiterating the high quality of our business and highlighting our ability to continue delivering sector-leading returns to shareholders, even through phases of growth. And on an annualized basis, our first half returns of $219 million is approximately 95% higher than our minimum shareholder returns commitment for the year of $225 million, again highlighting our commitment to supplemental returns that continue to increase given our strong operational performance.

For the first for the first half we generated $794 per ounce of free cash flow and returned $338 per ounce to shareholders, reflecting our commitment again to delivering enhanced shareholder returns and these higher gold price environments.

Our first half shelter in terms brings total returns over the last four and a half years to $1 4 billion.

And that's 81% above our minimum commitment for that period and that reflects our commitment to supplemental returns through phase of growth and cash flow harvesting reiterating the high quality of our business and highlighting our ability to continue delivering sector, leading returns to shareholders.

Even through phase of growth.

And on an annualized basis.

First half returns of $219 million is approximately 95% higher than our minimum shareholder returns commitment for the year of $225 million.

Again, highlighting acumen to supplemental returns continues to increase given our strong operational performance.

Jack Garman: Moving on to organic growth on slide 15, I think nothing better exemplifies ENDEAVOUR's ability to create value through the drill bit than the Assifu project in Q2, which continues to advance on schedule towards its DFS completion by early 2026. In H1 '25, we continue to advance the project. We completed over 20,000 meters of drilling, largely focused on infill, confirming and increasing our confidence in the reserve model for the early part of the mine plan. Now that we've completed this program, we can prioritize exploration principally at the Safu and Parla Trends 2 and 3 satellite targets within a kilometer of the Assifu main pit, where we expect to have a resource update later this year.

Moving on to organic growth from slide 15, I think nothing better exemplifies endeavors ability to create value through the drill bit then the answer food project.

<unk>, which continues to advance on schedule towards its DFS completion by early 2026.

In Asia 125, we continue to advance the project, we completed over 20000 meters of drilling largely focused on infill confirming and increasing our confidence in the reserve model for the early part of the mine plan.

Now that we completed this program, we can prioritize exploration principally the sofie and pilot trends two and three satellite targets within a kilometer is the <unk> main pit.

We expect to have the resource update later this year.

Jack Garman: The project is advancing to plan, and we've appointed the engineering contractor, the same team who we've successfully worked with on our last five construction projects, who will be led by a best-in-class in-house construction supervisory team. The permitting process also continues to advance as anticipated, with the environmental permit approval expected in the second half of this year and the exploitation permits expected early next year at the latest. All in all, Assifu remains on track to become a genuine Tier 1 asset in our portfolio and a key pillar of our next phase of growth, offering robust economics, strong exploration upside, and a straightforward proven CIL flow sheet design, very similar to that which we already have in place at Lafigge.

The project is advancing to plan, we've appointed the engineering contract to the same team who has successfully worked with on our last five construction projects, who relayed by best in class in house construction supervisory team.

The permitting process also continues to advance as anticipated with the environmental permit approval expected in the second half of this year and the exploitation parents expected early next year at the latest.

All in all <unk> remains on track to become a genuine tier one asset in our portfolio and a key pillar of our next phase of growth offering robust economics strong exploration upside in a straightforward proven CIO flow sheet design very similar to that which we already had in place.

At the C J.

Jack Garman: On slide 16, we've continued to advance our long-term organic growth pipeline through exploration, increasing our full-year guidance by $10 million to $85 million, driven by accelerated drilling programs at both ITI and Sabadala, and significant progress at Asafu as well as Funday. At Sabadal Masawa, drilling is focused on high-grade near mine non-refactory targets to support the ongoing technical review. Following the successes at Gestac and Sukutu, which are now in this year's mine plan, we've had success at the Mekana target, where results have outlined a potentially large-scale high-grade deposit located within 22 kilometers of the CIL processing plant. Exploration in ITI is focused on the ITI trend, where drilling has identified several highly prospective high-grade greenfield targets, and a follow-up program to test the scale of these targets is scheduled for later this year. Finally, at Funday, the high-grade Vindaloo deep deposit is beginning to take shape.

On slide 16, we've continued to advance our long term organic growth pipeline through exploration, increasing our full year guidance by $10 million to.

To $85 million drill.

Driven by accelerated drilling programs at both <unk> and $7 and significant progress at <unk> Sunday.

At $7 Massawa drilling is focused on high grade near mine non refractory targets to support the ongoing technical review.

Following the successes of <unk> C and Syncrude, which are now initiatives mine plant. We've had success at the Macondo targets, where results have outlined to potentially large scale high grade deposit located within 22 kilometers of the <unk> processing plant.

Exploration is focused on the trend where drilling has identified several highly perspective high grade Greenfield targets and a follow up program to test the scale of these targets is scheduled for later this year.

Finally, as one day the high grades <unk> deeps deposit is beginning to take shape drilling continues to highlight the potential for a large high grade underground deposit.

Jack Garman: Drilling continues to highlight the potential for a large high-grade underground deposit. Drilling is going to continue in the second half of the year to further delineate mineralization, and with an updated resource expected in early 2026. Before I hand over to Guy, I'd just like to briefly touch on ESG following the recent publication of our annual tax and economic contribution report. As the largest gold producer and the major employer in the region, we're a key contributor to the economic prosperity of our host countries. Last year, this amounted to a total economic contribution of $2.2 billion to our host countries through the transparent payment of taxes, royalties, salaries, and increasingly importantly, in-country procurement. Our economic contribution, although critically important, is just one aspect of the meaningful value that we deliver from the gold that we produce.

Drilling is going to continue in the second half of the year to further delineate mineralization and with an updated resource expected.

In early 2026.

Before I hand over to Guy I'd, just like to briefly touch on ESG. Following the recent publication of our annual tax and economic contribution report.

It's the largest gold producer and a major employer in the region were a key contributor to the economic prosperity.

Countries.

Last year this amounted to a total economic contribution was $2 2 billion.

As countries through the transparent payments of taxes royalties salaries and increasingly importantly in country procurement.

Economic contribution of a critically important is just one aspect of the meaningful value that we deliver from the goal that we produce.

Jack Garman: Transparency and traceability of responsibly sourced gold is equally important to ensure everyone benefits from the metal we mine, from jewellers, downstream users, and investors to ultimately our impact to communities. Single Mine Origin, or more commonly known as SMO, is just one such initiative, and they recently launched the SMO Foundation to fund a variety of projects in social equity, healthcare access, and environmental conservation. We're proud to be partnering with them on improving healthcare at Sabadal Masawa and supporting the protection of the Thai National Park, the jewel of West Africa in Q2. We're also proud to partner with the World Gold Council on their Gold: The Journey Continues series. The latest episode, which was launched a few weeks ago, actually features our most recent mine, Lafigge.

Transparency and traceability of responsive resource gold is equally important to ensure everyone benefits from the metal remind from jewelers downstream users and investors to ultimately are impacted communities.

Single mine origin or more commonly known as SMO is just one such initiatives and they recently launched the SMA Foundation to fund a variety of projects in socially equity health care access and environmental conservation.

We're trying to be partnering with them on improving health care silver dollar Massawa and supporting the protection of the time issue upon the jewel of West Africa incurred d'ivoire, where.

We're also proud to partner with the World Gold Council on the gold the journey continues series.

The latest episode, which was launched a few weeks ago actually features on most recent mind with CJ <unk>.

Jack Garman: And this documentary series is storytelling at its best for the industry, authentic, honest accounts of how mining can positively impact the lives of host communities, opening up economic opportunities to transform lives for better. I believe a very, very necessary counterbalance to often the unduly negative press that we get in our industry. And with that, let me pass you over to Guy, who's going to take you through the financial results. Guy, over to you.

This documentary series storytelling, and it's best to industry.

Honest accounts of how mining can positively impact the lives of host communities opening up economic opportunities to transform lives better I believe very very necessary counterbalance to often the unduly negative.

Press that we get in our industry.

And with that let me pass you over to Guy Who's going to take you through the financial results Guy here with you. Thanks Dan.

Guy Young: Thanks, Ian. I'll now walk through our financial results for the second quarter and first half of 2025. On slide 19 are our operational profitability and cash flow highlights for the quarter. Following the very strong production in Q1 and in line with our intended H1 weighting to de-risk production, our Q2 production was slightly lower due to lower grades being processed. Costs were slightly higher than Q1, mainly due to the lower volumes and grades mined and processed, as well as higher royalty costs and higher power costs, partially offset by a higher realized gold price, which drove improved EBITDA and a net earnings increase of 57%. Cash flows were robust but impacted by the expected seasonal peak in cash tax payments. As we originally guided, the majority of tax payments are now behind us for the year.

I'll now walk through our financial results for the second quarter and first half of 2025.

On slide 19, our operational profitability and cash flow highlights for the quarter.

Following the very strong production in Q1 and in line with our intended H one waiting to Derisk production.

Q2 production was slightly lower due to lower grades being processed.

Costs were slightly higher than Q1, mainly due to the lower volumes and grades mined and processed as well as higher royalty costs and higher power costs, partially offset by a higher realized gold price, which drove improved EBITDA and our net earnings increase of 57%.

Cash flows were robust, but impacted by the expected seasonal peak in cash tax payments.

As we originally guided the majority of tax payments are now behind us for the year.

Guy Young: Turning to slide 20, our Q2 production declined by 35,000 ounces over Q1, in line with mine sequencing, driven by lower grades processed at Funday, Sabadal Masawa, and Mana. Despite this, production was 55,000 ounces higher than Q2 last year as a result of the contributions from our new Sabadal Masawa biox plant and Lafigue mine, which both achieved commercial production in Q3 of last year. Our all-in sustaining margin also continued to improve in Q2, thanks to the strong gold price during the quarter, which was partially offset by an increase in ASIC quarter on quarter due to the impact of higher royalty costs and higher power costs, the latter being driven by lower grid power availability as hydroelectric dam capacity in Q2 was at its lowest point for the year ahead of the annual wet season.

Turning to slide 20, our Q2 production declined by 35000 ounces over Q1 in line with mine sequencing.

Driven by lower grades processed that one day $7 Massawa and banner.

Despite this production was 55000 ounces higher than Q2 last year as a result of the contributions from our new <unk> box plant and the <unk> mine, which both achieved commercial production in Q3 of last year.

Our all in sustaining margin also continued to improve in Q2.

Thanks to the strong gold price during the quarter, which was partially offset by an increased nicely quarter on quarter due to the impact of higher royalty costs and higher.

Power costs.

The latter being driven by lower grid power availability as hydro electric dam capacity in Cote d'ivoire was at its lowest point for the year ahead of the annual wet season.

Guy Young: Moving on to slide 21, our EBITDA increased by 10% quarter over quarter, supported by our robust operational performance, higher gold prices, as well as a swing in unrealized FX gains as the US dollar depreciated against the euro. Importantly, our EBITDA margin also improved by some 700 basis points to 59% in the quarter, highlighting our strong cost position and leverage to the gold price. Moving to slide 22, our operating cash flow for Q2 was $252 million and lower than Q1 due to the seasonal peak in cash tax payments across all three jurisdictions and slightly lower production in line with mine sequencing, as previously discussed. As outlined in our tax guidance earlier in the year, we expected to incur around 55% of our full-year cash taxes in Q2, and we paid $233 million in the quarter.

Moving onto slide 21.

Our EBITDA increased by 10% quarter over quarter supported by a robust operational performance.

Prices as well as swing in unrealized FX gains as the U S dollar depreciated against the Euro.

Importantly, our EBITDA margin also improved by some 700 basis points, 59% in the quarter, highlighting our strong cost position and leverage to the gold price.

Moving to slide 22, our operating cash flow for Q2 was $252 million and.

And lower than Q1 due to the seasonal peak in cash tax payments across all three jurisdictions and slightly lower production in line with mine sequencing as previously discussed.

As outlined in our tax guidance earlier in the year, we expected to incur around 55% of our full year cash taxes in Q2, and we paid $233 million in the quarter.

Guy Young: By quarter end, we had already paid approximately 70% of our full-year cash taxes, positioning us for a strong second half in terms of cash flow. We can see this in more detail on slide 23 and the Q2 operating cash flow bridge, where, as mentioned earlier, the quarter-on-quarter decline in operating cash flow was primarily driven by 49,000 ounces lower gold sold, as well as higher royalty costs and higher operating costs for both Funday and ITI. In addition, income tax paid increased by $194 million in line with the seasonality of our cash tax payments, as previously spoken about. These impacts were partially offset by a $367 per ounce increase in the realized gold price and a $54 million reduction in working capital outflows.

By quarter end, we had already paid approximately 70% of our full year cash taxes positioning us for a strong second half in terms of cash flow.

We can see this in more detail on slide 23.

And the Q2 operating cash flow bridge, where as mentioned earlier at the quarter on quarter decline in operating cash flow was primarily driven by 49000 ounces lower gold sold as.

As well as higher royalty costs and higher operating costs, but one day entity.

In addition income tax paid increased by $194 million in line with the seasonality of our cash tax payments as previously spoken about.

These impacts were partially offset by a $367 per ounce increase in the realized gold price and a $54 million reduction in working capital flows.

Guy Young: The lower working capital outflow was largely driven by the unwinding of gold and circuit inventory built up during the prior quarter at both Funday and ITI. This was partially offset by an $18 million buildup in VAT receivables, primarily at Funday, Mana, and Lafigge. At Lafigge, the process was simply delayed following the mine startup last year, while at Funday and Mana, we continued to look at options to offset or factor some of our VAT receivables going forward, the net result of which was a very credible $232 million of operating cash flow in the quarter. Moving now to slide 24, our operating cash flow of $252 million translated into a free cash flow generation in the quarter of $104 million after deducting $148 million of investing cash flow, which I will detail further in the next slide.

The lower working capital outflow was largely driven by the unwinding of Goldman circuit inventory built up during the prior quarter.

One day in it.

This was partially offset by an $18 million buildup in receivables primarily at Hyundai <unk> in Lafayette.

At <unk> the process is simply delayed following the mine startup last year, while it <unk> matter. We continue to look at options to offset the fact that some of our receivables going forward.

The net result of which was a very incredible $262 million.

Operating cash flow in the quarter.

Moving now to slide 24, our operating cash flow of $252 million translated into a free cash flow generation in the quarter up $104 million after deducting $148 million of investing cash flow, which I will detail further in the next slide.

Guy Young: In terms of cash flow seasonality, I reiterate that, importantly, we've now paid approximately 70% of our full-year cash taxes, and as such, are in an excellent position to generate free cash flow in the second half of the year, supported by stronger gold prices. Our leverage position, as outlined on slide 25, remains stable throughout the quarter, while our net debt increased by $91 million due to the significant cash tax and shareholder returns payments during the quarter. Operating cash flow at $252 million, as previously mentioned. Investing activities was an outflow of $148 million, an increase over the first quarter as our capital expenditure ramped up. The total is comprised of $59 million of sustaining capex, $65 million of non-sustaining capex, and $10 million of growth capital as we continue to advance the Assifu definitive feasibility study.

In terms of cash flow seasonality I reiterate that importantly, we have now paid approximately 70% of our full year cash taxes and as such are in an excellent position to generate free cash during the second half of the year supported by stronger gold prices.

Our leverage position as outlined on slide 25 remained stable throughout the quarter, while our net debt increased by $91 million due to the significant cash tax and shareholder returns payments during the quarter.

<unk> cash flow of $252 million as previously mentioned.

Investing activities was an outflow of $148 million, an increase over the first quarter as our capital expenditure ramped up.

The total is comprised of $59 million of sustaining capex.

$65 million of non sustaining capex and $10 million of growth capital as we continue to advance the asset through definitive feasibility study.

Guy Young: Financing activities was an outflow of $256 million, primarily related to the $140 million H2 2024 shareholder dividend payment, which we paid in April, as well as $39 million in financing costs related to the bond refinancing and interest on other debt instruments. $29 million was in share buybacks and $28 million in net repayments of debt and $7 million in lease repayments. We also recognized a $49 million gain from the foreign exchange remeasurement of cash balances through the quarter. Our leverage remains stable despite the slight increase in net debt, as our last 12-month adjusted EBITDA continued to improve, reflecting both higher realized gold prices and the positive impact of commercial production at our growth projects from Q3 of last year.

Financing activities was an outflow of $256 million.

Merrily related to the $140 million each to 2024 shareholder dividend payments, which we paid in April.

As well as $79 million in financing costs related to the bond refinancing and interest on other debt instruments.

$99 million was in share buybacks, and $28 million and net repayments of debt and $7 million and lease repayments.

We also recognized a $49 million gain from the foreign exchange Remeasurement cash balances through the quarter.

Our leverage remained stable despite the slight increase in net debt as our last 12 months adjusted EBITDA continued to improve reflecting both higher realized gold prices and the positive impact of commercial production net of growth projects from Q3 of last year.

Guy Young: Turning to our capital structure on slide 26, we successfully refinanced our $500 million senior notes in May of this year, replacing our existing 5% senior notes that were maturing in 2026, new 7% senior notes maturing in 2030. The transaction, which was significantly oversubscribed, has extended our debt maturity profile and maintained our relatively low cost of capital. Importantly, the old notes that were issued at a spread to five-year treasuries of approximately 395 basis points, while the new notes were issued at a reduced spread of only 300 basis points, reflecting the improved geographic diversification and quality in our portfolio.

Turning to our capital structure on slide 26 <unk>.

We successfully refinanced our $500 million senior notes in May of this year, replacing our existing 5% senior notes that were maturing in 2026, new 7% senior notes maturing in 2017.

The transaction, which was significantly oversubscribed has extended our debt maturity profile and maintained a relatively low cost of capital.

Importantly, the old notes that were issued at a spread to five year treasuries of approximately 395 basis points, while the new notes were issued at a reduced spread of only 300 basis points, reflecting the improved geographic diversification and quality in our portfolio.

Guy Young: I also thought it's worth highlighting that post the end of this quarter that we're reporting on now, we repaid approximately $426 million on our $700 million RCF, leaving a residual $46 million drawn, significantly reducing our gross debt from $1.1 billion to approximately $680 million as at the end of July. With our healthy leverage, our long-term and low-cost capital structure, coupled with our strong free cash flow outlook, we are well positioned to deliver on our strategy to organically grow while delivering attractive returns to our shareholders. Moving lastly to slide 27 and our net earnings, our adjusted net earnings per share decreased by 17 cents due to lower earnings from operations as a result of slightly lower production at higher costs.

I also saw its worth highlighting that post the end of this quarter that we're reporting on now we repaid approximately $426 million on our $700 million Rcs.

Leaving a residual $46 million drawn significantly reducing our gross debt from $1 1 billion to approximately 680 million as at the end of July.

With our healthy leverage our long term and low cost capital structure, coupled with our strong free cash flow outlook.

Well positioned to deliver on our strategy to organically grow while delivering attractive returns to our shareholders.

Moving lastly, slide 27, and our net earnings.

Our adjusted net earnings per share decreased by 17 due to lower earnings from operations as a result, slightly lower production at higher costs.

Guy Young: Net earnings improved significantly as we recorded an $18 million gain on financial instruments as a result of unrealized FS gains on net assets and unrealized gains on gold collars as the outstanding collars continued to wind down, partially offset by a realized loss on gold collars for the quarter of $46 million, reflecting the 50,000 ounces that were settled. While our 50,000 ounces of gold collars cost us $46 million this quarter, pleasingly, there are only another two 50,000 ounce tranches to be settled in Q3 and Q4 before we are fully exposed to the gold price, giving us an immediate benefit from Q1 next year at current gold prices. Net tax expenses were also lower due to a significant deferred tax recovery, which was the result of an FX gain on deferred tax balances and payments of withholding tax.

Net earnings improved significantly as we recorded an $18 million gain on financial instruments. As a result of unrealized FX gains on net assets and unrealized gains on our golf colors as the outstanding colleagues continue to wind down.

Partially offset by a realized loss on gold colors for the quarter of $46 million, reflecting a 50000 ounces that was settled.

While our 50000 ounces of gold call it cost us $46 million this quarter pleasingly there is only another $2 50.

<unk> tranches to be settled in Q3 and Q4.

While we are fully exposed to the gold price, giving us an immediate benefit from Q1 next year at current gold prices.

Net of tax expenses were also lower due to a significant deferred tax recovery.

It was the results of an FX gain on deferred tax balances and payments of withholding taxes.

Guy Young: As a result, total net earnings of $343 million were $121 million higher than the previous quarter. Finally, the adjustments, which include the unrealized gains on gold collars and FX on net assets, partially offset by other expenses, which resulted in a $100 million adjustment to adjusted earnings per share. I'll now hand it over to Djaria for the review of our operating performance.

As a result total net earnings of $343 million were $121 million higher than the previous quarter.

Finally, the adjustments, which include the unrealized gains on gold colors and FX on net assets, partially offset by other expenses, which resulted in a $100 million adjustment to adjusted earnings per share.

I will now hand, it over to Gerry for the review of our operating results. Thank you Ben.

Djaria Traore: Thank you, Guy. Our group lost time injury frequency rate remained low at 0.05, and our total recordable injury frequency rate remained stable at one for the quarter, similar to quarter one. This reflects our strong safety culture and benchmark against the recent ICMM safety performance report, positions ENDEAVOUR amongst the safest mining companies globally. However, complacency is the enemy of safety, and we are currently undertaking a group-wide safety leadership training program for all our frontline supervisors to re-energize reporting of leading indicators. This initiative aimed to improve safety performance by encouraging proactive reporting of potential hazards and near misses, rather than solely focusing on reactive measures after incident. Moving to slide 30, we've had a strong first half of the year. Production total is 647,000 ounces for each one, which is approximately 58% of the low end of our guidance range and 55% of guidance midpoint.

Our real time injury frequency rate remained at zero point there.

Hi.

And our total recordable injury frequency rate remains stable at one for the quarter.

Similar to quarter one.

It reflects our strong safety culture and.

Benchmarked against the recent ICM and safety performance report.

Patients are amongst the safest mining companies globally.

However, complacency is the enemy of 60.

We are currently undertaking a group wide safety leadership training program.

All our frontline supervisors to re energize reporting completing indicators.

This initiative and to improve safety performance by encouraging proactive reporting of potential hazard and near misses.

Rather than solely focusing on reactive measures up to incident.

Moving to slide 13.

We had a strong first half of the year.

Production totaled 647000 ounces for each one.

We issued approximately 58% of the low end of our guidance range.

And 55% of guidance mid point.

Djaria Traore: Drill production in Q2 was 360,000 ounces, slightly lower than quarter one, but in line with mine plans, as grades were lower at Funday, Mana, and Lafigge. Looking to H2, we expect production to be slightly lower than H1 due to anticipated lower grades at Funday and at ITI. Our H1 in sustaining cost was $1,281 per ounce, well within our four-year guidance range and only slightly above the midpoint due to the impact of higher gold price on royalty costs, which added approximately $96 per ounce during the period. The quarter two all-in sustaining cost for the group was $1,458 per ounce, higher than quarter one all-in sustaining cost due to the higher gold price impacting royalty costs, lower gold sales, higher power costs due to the lower hydroelectric capacity towards the end of the dry season, but also increased sustaining capital costs at Funday, ITI, and Lafigge.

Gold production at <unk> was 360000 ounces.

Lower than quarter, one, but in line with mine plans as to when we'll know at wounded.

And lastly gate.

Looking to Asia.

We expect production to be slightly lower than each one.

Due to anticipated lower grades at <unk> and at HP.

Our each one even sustaining cost was $1281 per ounce.

One is within our full year guidance range and only slightly above the midpoint.

Due to the impact of higher oil price on royalty cost.

We added approximately $96 per ounce during the period.

The portal to all in sustaining costs for the group was $1458 per ounce.

Higher than quarter, one only sustaining cost due to the higher gold price impacting royalty cost lower wholesales higher power cost due to the lower hydro electric capacity towards the end of the dry season.

But also increased sustaining capital cost at it.

Key unless you get.

Djaria Traore: During H2, if the gold price is stable, we expect slightly higher all-sustaining costs due to slightly lower production due to the wet season and the impact of higher gold prices on royalties. ENDEAVOUR remains in the sector's lower cost quartile and is on track to meet four-year guidance. Now turning to mine by mine performance, starting with Sabadal Masawa on slide 31. Production declined slightly from quarter one due to lower tons and grade mills through the CIL plants slammed, while grades and recovery through the biox circuit improved as mining advanced through the Masawa Central Zone pit into higher grade and fresh ore. All sustaining costs increased due to slightly lower gold sales, higher processing costs due to maintenance and increased reagent consumption, and the impact of higher gold prices on royalty costs.

During a store if the oil price is stable, we expect slightly higher all sustaining cost.

Due to slightly lower production due to the wet season, and the impact of higher gold prices or royalties.

And Deepa remains in this sector lower cost quartile and on track to meet full year guidance.

Now turning to mine by mine performance.

Hudson with capable on the seller on slide 31.

Production declined slightly from quarter, one due to lower tonnes and grade mill through the CIL plant planned.

While the Asia countries through the biopsy could improved as mining advance through the Massawa Central zone, Pete into higher grade and fresh ore.

All sustaining cost increased due to slightly lower gold sales.

Higher processing costs due to maintenance and increased reagent consumption and the impact of higher gold prices on royalty costs.

Djaria Traore: In H2, we expect CIL production to be broadly consistent with H1 levels, while the biox input is set to increase as we begin processing more fresh ore from the Masawa Central Zone, supporting improved grades and recovery. Since we launched our technical review at Sabadal Masawa in quarter three of last year, performance has continued to improve, which is driven largely by improvement in the biox circuits. As part of this review, we've been looking at ways to increase biox throughput and recoveries and opportunities as well to incorporate higher grade feed into the CIL plant, with the aim of increasing production at Sabadal Masawa complex towards a 350,000 ounces per annum run rate. Turning to slide 33, the first phase of the technical review was a comprehensive review of reserve and resources at Sabadal Masawa.

In Asia, we expect production to be broadly consistent with each one levels.

With biopsy essentially increase.

As we begin processing more fresh ore from the Marcellus Central zone.

Supporting improved grade and recovery.

Since we launched our technical review Axa Bedolla Massawa in quarter three of last year.

Performance continued to improve.

Driven largely by improvements in the buyouts circuits.

As part of this review, we have been looking at ways to increase by up throughput and recovery rates.

And opportunities as well to incorporate higher grid ceiling to the CIL plant.

With the aim of increasing production at subdued levels sellout complex.

So it was a trailing grid.

I'll start our normal run rate.

Turning to slide 33.

The first phase of the technical review was a comprehensive review of reserves and resources at solar Massawa.

Djaria Traore: This included over 300,000 meters for additional grid control drilling, which was incorporated into existing models and reevaluated by both internal qualified persons and independent external consultants. We are pleased to confirm that our existing reserves and reserves assumptions with no major deviations to grade, tonnage, or contain ounces compared to our year-end 2025/2024 reserves and reserves. Moving to slide 34, we've been progressively optimizing the biox circuits, initially through the use of a pebble crusher and optimizations of the SAG mill discharge, which have improved the stability of the mill feed into the flotation circuits, resulting in improved flotation performance. We've already seen improved peak throughput, which we are working on sustaining. We expect to start 2026 at a higher throughput rate than design, with an ultimate goal to sustain 10% to 15% throughput through above design.

This included over 300000 meter, but additional grade control drilling.

Which was incorporated into existing model.

And reevaluated by both internal qualified person and independent external consultant.

We are pleased to confirm that our existing reserves, our reserves assumptions with no major deviations to great pardon.

Our niche of contained ounces compared to a year end 2025 2024.

And reserves.

Moving to slide 34.

We've been progressively optimizing the bias circuits.

Initiatives toward the use of a pebble crusher and optimizations of the Sag mill discharge.

We have improved the stability of the mill feed into the floatation circuits.

Resulting in improved location performance.

We've already seen April peak throughout throughput, which we are working on sustaining.

We expect to start 2026 at a higher throughput rates and design win.

With an ultimate goal to sustain 10% to 15% throughput for both.

Design.

Djaria Traore: Biox recovery has also improved significantly since the first gold pour, and we are trending towards the mid-80% range, which is where we expect life of mine recoveries to stabilize. The improvement is a result of ore mining advancing deeper into the Masawa Central Zone pit through the transitional ore to now comprising about 80% fresh ore. We expect the fresh-to-transition ratio to continue increasing as mining advances. Through the second half of the year, we will also be increasing the capacity of the gravity circuit, leveraging spare components from the existing CIL plant to help recover a higher proportion of force-free gold in the biox circuits. Moving on to slide 35, and the CIL plant where grade is outflowed, underground reserves at the Blue Marker Rukunda deposits are currently being explored to test potential expansion to existing reserves.

By extra country have also improved significantly since the first gold pour and we are trending towards the mid 80% range, which is where we expect life of mine recoveries to stabilize.

The improvement is the result of ore mining advancing deeper into the Marcellus Central zone.

So the traditional or so now comprising about 80% threshold.

We expect the <unk> to transitional ratio to continue increasing.

Mining advances.

Through the second half of the year, we will also be increasing the capacity of the gravity circuits.

Leveraging our component from the existing CIL plant.

<unk> for the quarter, a higher proportion of fourth street colt and the bike circuits.

Moving onto slide 35, and the CIL plant with grid is out for us.

Underground reserves of the below market recruitment that deposits are currently being explored.

<unk> potential expansion with existing reserves.

Djaria Traore: At the same time, we've launched a scoping study for the underground expansion, which will provide us with better clarity on the cost as well as timeline required to accelerate this high-grade material into the mine plan. And we expect this to be completed in H1 next year. The last component of the technical review on slide 36 is focused on identifying and delineating high-grade non-refactory resources to help offset the expected grade decline at the CIL plant. The exploration program is building on recent successes at the Kiesta C and Sukoto deposits, which are now in production and is targeting the Mekana deposit located approximately 22 kilometers from the Sabadal process plant.

At the same time, we've launched a scoping study for the <unk> expansion.

Which will provide us with better clarity on the cost.

Well as timelines required.

Accelerated high grade material into the mine plan.

And we expect this to be completed in each one next year.

The last component of the technical review on slide six.

It's focused on identifying and delineating high grade non refractory resources.

To help offset the expected grade decline are the CIL plant.

The exploration program is building on recent successes are the key the key is to put a deposit.

Which are now in production.

And is targeting the Mccullough deposit located approximately 22 kilometers from the subtotal our process plant.

Djaria Traore: Mekana is shaping up to be a potentially sizable near-surface high-grade deposit that will provide a near-term multi-year sources of feed for the CIL plant once high potential resources are defined, which we expect by the end of the year. Let's now turn our attention to our Funday mine on slide 37. Despite the very strong first half, we saw process grade decrease in Q2, as expected, following the acceleration of high-grade ore from the carry pump deposit into the mill in the first quarter. As a result, production was lower quarter on quarter, and all-in sustaining costs were higher due to the lower gold sales and winding on inventory and higher gold prices impacting royalties. Due to a lower proportion of high-grade ore from carry pump in the plant for the second half of the year, we expect lower grades and lower production.

Lasalle is shaping up to be able to potentially favorable near surface high grade deposit.

I will provide a near term multi year sources of feed for the CIL plant.

One tied to potential resources are defined.

We expect by the end of the year.

Let's now turn our attention to while holding the line on slide 30.

Kevin.

Despite the very strong first half.

We thought <unk> decrease in <unk>.

As expected following the acceleration of high grade ore from the Kari pump deposit.

Into the meal and first quarter.

As a result.

<unk> was lower quarter on quarter.

And all in sustaining costs were higher due to the lower gold sales.

And England inventory and higher gold prices impacting royalties.

Due to a lower proportion of high grade ore from Kari pump and the plan for the second half of the year, we expect lower grades and lower production.

Djaria Traore: Funday remains on track to achieve its production guidance within our all-in sustaining cost guidance range. Turning to ITI on slide 38, quarter two was another steady quarter operationally. The production was stable while all-in sustaining costs were higher, which was driven by lower volumes of gold sold due to the timing of gold sales, but also increased haulage and drill and blast activity and higher power costs associated with seasonally lower grid availability. Royalty costs also increased due to the higher realized gold price. Looking ahead to the second half of the year, the production is expected to decrease slightly due to a planned reduction in high-grade ore mined from the ITI and the Wiltlak pits. ITI continued to be a standard contributor to the portfolio and remains on track to achieve production guidance with all-in sustaining costs within the range.

Wholesale remains on track to achieve its production guidance.

Within our all in sustaining cost guidance range.

Turning to <unk> slide 38.

Quarter, two was another steady quarter operationally.

The production was stable while all in sustaining costs were higher which was driven by lower volumes of gold sold due to the timing of those cells.

But it also increased haulage and drill and blast activity.

And higher power costs associated with seasonally lower grid availability.

Royalty costs also increased due to the higher realized gold price.

Looking ahead to the second half of the year.

Production is expected to decrease slightly due to a planned reduction in high grade ore mined from the key and albeit black beans.

It is continuing to be a standout contributor to the portfolio and remains on track to achieve production guidance with all in sustaining cost within the range.

Djaria Traore: Moving to Mana, the production in quarter two declined due to lower average grades mined and processed from the Sew deposit, which was in line with the mine plan. All-in sustaining costs increased largely due to a lower grade availability, higher royalty costs, which related to the higher realized gold price and lower gold sales volume. But looking ahead at H2, production is expected to remain broadly in line with H1, while all-in sustaining costs are expected to improve, driven by the transition to a single underground mining contractor, which is expected to drive reliability and productivity improvement from the fourth quarter onward. Overall, Mana is on track to meet its four-year production guidance with all-in sustaining costs near the top end of the guidance range.

Moving to China.

The production of imported to decline due to lower average grades mined and processed from the pure deposit which was in line with the mine plan.

All in sustaining costs increased largely due to a lower grid availability.

Higher royalty costs, which related to the higher realized gold price and <unk> sales volume.

But looking ahead at the H two.

Production is expected to remain broadly in line with each one.

While all in sustaining costs are expected to improve.

Driven by this transition towards single underground mining contractor, which is expected to drive reliability and productivity improvement from the fourth quarter onward.

Overall Mueller is on track to meet at full year production guidance with all in sustaining cost near the top end of the guidance range.

Djaria Traore: Lastly, turning to our newest operation, Lafigge on slide 40, production was relatively stable in quarter two despite lower grade processed due to continued improvement in throughput levels. Throughput for quarter two was 16% above designed plate reflecting.Testing

Lastly.

Turning to our newest operation Lucky Gail on slide 14.

Yeah.

Production was relatively stable in two <unk>.

<unk> processed due to continuing blend in throughput levels.

Third point for quarter, two was 16% above design clips.

Djaria Traore: ongoing operational improvement on site. Looking forward, we are prepared to continue driving higher throughput using mobile approaching for software upside or an intense predictive maintenance to improve plant availability and utilization. We have also mobilized an additional mining contractor to support these higher levels of throughput. All in sustaining cost rose during the quarter, primarily due to higher royalty payment related to higher realized gold price. For the second half of the year, process grades are expected to be lower than in H1. However, this is anticipated to be largely offset by the continued improvement in throughput. Overall, Lafayette remains on track to meet its four-year guidance. I will now hand it back to Ian for his closing remarks.

Reflecting ongoing operation improvement on site.

Looking forward.

We would expect to continue driving higher throughput.

Using mobile crushing of softer oxide ore and predictive maintenance.

<unk> plant availability and utilization.

We have also mobilized in additional mining contractor too.

Support the higher level of throughput.

All in sustaining costs rose during the quarter, primarily due to higher royalty payment.

Related to higher realized core price.

For the second half of the year.

Process grades are expected to be lower than in each one.

However, this is anticipated to be largely offset by the continued improvement in throughput.

Overall <unk> remains on track to meet its full year guidance.

I will now and it backs.

<unk> for his closing remarks.

Ian Cockerill: Thank you, Djariya. I think with our strong operation momentum and the supportive gold price environment, we're certainly well positioned to build on an ENDEAVOUR MINING PLC Djaria Traore first half performance through the remainder of this year and beyond. As we look ahead, our near-term strategic priorities are focused on maximizing free cash flow generation and delivering enhanced showed returns. And given our strong balance sheet position, we're certainly very well positioned to execute our organic growth strategy. And with that, I will hand over for Q&A.

Thank you Jerry.

I think with our strong operating momentum and this supported gold price environment, We're certainly well positioned to build on an enviable first half performance through the remainder of this year and beyond.

As we look ahead, our near term strategic priorities are focused on maximizing free cash flow generation.

And delivering enhanced shareholder returns and given our strong balance sheet position, we're certainly very well positioned to execute our organic growth strategy.

And with that.

I will hand over for Q&A.

Jack Garman: Thank you. To ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. The first question comes from Milan Gabriel with Morgan Stanley. Your line is open.

Thank you to ask a question. Please press star one on your telephone and wait for your name to be announced.

Your question. Please press Star one one again the first question comes from Milan, Gabrielle with Morgan Stanley. Your line is open.

Guy Young: Thank you for taking my question. I just have one question on Sabudala Masawa. You clearly seem to have done a lot of work along the technical report or the technical review of the mine. Putting all the learnings you've had or you've made so far, how do you see the production profile evolving into 26 and 27? Has anything changed in the last three months? I'm conscious that you're still, it's still work in progress, but any color you can give us there would be much appreciated. Thank you.

Thank you for taking my question I just have one question on <unk>. How are you clearly seem to have done a lot of work along the technical report or the technical review.

All of the mine.

All the learnings.

You've had you've made so far how do you see the production profile evolving into 'twenty six 'twenty seven has anything changed in the last three months.

I'm conscious that you stated it still work in progress, but any color you can give us there wouldn't be much I appreciate it. Thank you.

Djaria Traore: Thank you for the question. Obviously, if we compare where we were last year to this year, we've seen an improvement both in recovery. I've talked about the significant improvement that we've seen because we've seen more fresh coming from the Masawa Central Peaks. We've also seen an improvement on the recovery. We're now near the 80%, and that's what we wanted to be going forward. So we are looking, expecting that the production this year will improve compared to next year. 2026, we expect an improvement as well compared to 2025. So progressively, it's to ensure that we are incrementally adding to it. As I mentioned earlier as well, we are looking at a run rate of 350 per annum. Of course, depending on the underground that we expect to come to line around 2028.

Thank you for the question.

Obviously, if we compare where we were last year. So this year, we've seen an improvement bulletin recall talks about the significant improvement that we've seen because we've seen more fresh coming from the Marcellus central eight.

We also seen an improvement on the recovery, we now near the 80% and Thats, what we want to be going forward.

So we are looking expecting that the production that will improve compression next year.

1026, we expect some improvement as well compared to 2025, so progressively.

To ensure that we are incrementally adding to it as I mentioned as well we are looking at a run rate of 350 to or no.

Of course, depending on the underground.

To come to align around 2028.

Okay.

Guy Young: Thank you. Just to clarify, the 350 that you expect is the average for 26, or is it more of an exit trade for 26?

Thank you and just to clarify the $3 50 that you expected. The average 426 or is it more of a exit rate for 2006.

Djaria Traore: No, no, no, it will not be the average for 2026. 2026 will definitely be an improvement compared to 2025. Your run rate of 350 is more the mid to long term.

No no no it will not be the average for 2026 2000 seats for Def into will be improvement.

Compared to 2025.

The run rate of 350.

The mid to long term.

Guy Young: Thank you. Very clear.

Thank you alright.

Jack Garman: And the next question comes from Avise Habib, Wisconsin Bank. Your line is open.

And the next question comes from advice Habib with Scotiabank. Your line is open.

Djaria Traore: Thanks, operator. Hi, Ian and the team congrats on a good quarter. Ian, a couple of questions for me, and maybe this is a continuation from the previous question regarding Sabudala Masawa tech review. You know, I mean, is this going to be a new tech report, new mine plan, or is it just more of an internal review that you guys are doing? And how is this going to be kind of disseminated to the public?

Thanks, operator.

Hi, Ian and <unk>, congrats on a good quarter.

And couple of questions for me and maybe this is a continuum.

Generation from the previous question regarding <unk> Massawa decorative view.

I mean is this going to be a new Tech report new mine plan or is it just more of an internal review that you guys are doing.

And how is this going to be kind of a.

Disseminated to.

The public.

Ian Cockerill: Sorry, Avise, we were having trouble getting the microphone on. No, it's not going to be a completely new report. It just basically is fine-tuning what we've already got, recognizing, you know, where there are shortcomings, where there's scope for improvement. I think as you've seen in this year, exactly as Djariya said, you know, we're seeing, you know, an appreciable improvement in performance this year, particularly coming out of the Biox plant. The next area that we're looking at is trying to find more good quality, straightforward CIL plant feed so we don't have to just put through lower grade stockpile. We'll have higher grade current arisings. And then the cherry on the cake on top of any enhanced throughput that we can see, particularly through the Biox plant, the cherry on the cake will be how quickly we can bring in higher grade underground material.

Sorry, we were having trouble getting the microphone on.

Theyre going to be a completely new report it just basically is fine tuning what we've already got recognizing where the shortcomings, where the scope for improvement I think as you've as you.

<unk> seen initial exactly as Jerry said.

We are seeing.

Appreciable improvement in.

In performance this year, particularly coming out of the.

<unk>.

The next area that we're looking at is trying to find more good quality stuff.

Forward CIL plant feed.

We don't have to just put through lower grade stockpile will have client grade current arising and then.

The Cherry on the cake on top of any it enhance throughput that we can see particularly through the.

The bio ox termed the cherry on the cake will be how quickly we can bring in.

The grade underground material.

Ian Cockerill: And that's requiring a lot of careful engineering. I think the one thing that we've learned, Avise, at Sabudala is the last thing that we want to do, having disappointed the market once, we don't want to do it again. This time, I want to make sure that we are perfectly on top of everything. And as soon as we've got something firmed up, we will give out a complete sort of update as to where we are. What we're trying to do is on an as-you-go basis, give as much sort of update as to where we are in the technical review. But we're making good progress. And I still fundamentally believe in this particular mine as a high potential source. It's just, it is definitely underexplored.

Requiring a lot of careful engineering I think the one thing that we've learned to this.

The dollar is the lesson that we want to do having disappointed the market once we don't want to do it again.

We want to make sure that we are perfectly on top of everything.

Soon as we've got something firmed up.

We will give out a complete.

Sort of update as to where we are what we're trying to do is on that as you go basis give as much sort of update as to where we are in the technical review, but we're making good progress.

And I still fundamentally believe in this particular mine.

Client potential sources, just it is definitely under explored.

Ian Cockerill: We just need to get it right, and we need to understand the intricacies of both the fresh material and the complexities of the more refractory-like material.

We just need to get it right, we need to understand the intricacies.

Both feet, the fresh material and the complexities of the the more refractory material.

Djaria Traore: Perfect. Thanks for that, Ian. And then just kind of moving on to exploration, you know, obviously, SAFO has been a huge success for ENDEAVOUR. I mean, is the exploration team kind of focused in 2025 on near mine exploration, or has the team started to look for the next SAFO?

Perfect. Thanks for that.

And then just kind of moving on to exploration.

Obviously as Apple has been a huge success for endeavour.

I mean is the exploration team kind of focused in 2025 on near mine exploration or has the team started look for the next cycle.

Ian Cockerill: Look, we're going to give a strategic update in the second half so we can give a little bit more color. But I think it is fair to say that in the short term, you know, we are doing, I think there's a better balance now between both the green fields as well as the brown fields. A lot of effort going into resource to reserve conversion for obvious reasons. But we're extremely fortunate that wherever we are on all of our mining projects, we've got highly prospective ground. Really increasing our efforts, increasing the amount of time and money we put into exploration, we're seeing the more we drill, the more we discover. So the challenge for Sonia in her new role is just making sure that she gets that balance right between green fields as well as brown fields.

Okay.

Give.

Strategic update in the second half.

So we can give a little bit more color, but I think it is fair to say that in the short term we are doing.

I think there's a better balance now between both fee.

Greenfields as well as the brownfields.

A lot of effort going into resource to reserve conversion for obvious reasons.

We're extremely fortunate that wherever we are.

<unk>.

Miami.

<unk>, we got a highly prospective ground.

Really.

Increasing our efforts to increase.

Increasingly the amount of time and money, we put into exploration, we're seeing the more we drill the more we discover.

So.

The challenge for Sarnia in her new role is just making sure that she gets a balance right between greenfields brownfields, but we can give a little bit more sort of detail on that later on this year.

Ian Cockerill: But we can give a little bit more sort of detail on that later on this year.

Djaria Traore: Got it. Looking forward to that. And then just the last question. I mean, in terms of capital allocation, you're looking to pay a $150 million dividend in October. Just on the share buybacks, how aggressive should we expect you to be going into share buybacks into the second half of the year? Are you going to kind of remain as aggressive as you've been in the first half, or how should we see the second half?

Got it looking forward to that.

And then just last question.

In terms of capital allocation, you are looking to pay $150 million dividend in October.

Just on the share buyback, how aggressive should we expect it to be going into share buybacks into the second half of the year.

How are you going to kind of remain as aggressive have you been in the first half or how should we see the second half.

Ian Cockerill: We'll retain our views upon buying at the times that we feel that the prices are advantageous in terms of us doing buybacks. Again, as you quite rightly point out, you know, this is just one component of our capital allocation program. And you know, if there are competing uses for that money, we'll look at those. But I think you should genuinely see that there will be continued buybacks, the tenor of which, you know, I don't really want to go into, but we will continue.

Yes.

We retain.

Use upon.

Buying at the times that we feel that the.

Prices are advantageous in terms of us doing buybacks.

Again as you quite rightly pointed out this is just one component of our capital allocation program.

And.

If there are competing.

Uses for that money will look at those but I think you should generally see that there will be continued buybacks.

Tenant of which.

I don't really want to go into but we will continue.

Djaria Traore: Okay, thanks for that, Ian. And that's it for me. And again, congrats on a good quarter.

Okay, Thanks for that and Thats It for me and again congrats on a good quarter.

Jack Garman: And the next question will come from Richard Hatch with Berenberg. Your line is open.

And the next question will come from Richard Hatch with Baird. Your line is open.

Carey MacRury: Thanks. Yeah, morning Ian and team, and congrats on a nice quarter. Just a few questions from me. The first one is just on the second half dividend. I mean, you've been pretty good at setting the level, beating it, taking that to the next level, beating that. So should we expect that 150 to be the base level going forward? That's the first one.

Thanks, Good morning attainment.

Congrats on a nice quarter, just a few questions from me.

First one is just on the yes, the second half dividend.

<unk> been pretty good.

Setting the level based on yet.

Taking that to the next level.

So should we expect that 150 to be the base level going forward. That's the first one.

Ian Cockerill: Hey, Richard. I think, you know, what we're saying is we're sticking to what we've made a minimum commitment to do. However, we are also sticking to the supplemental returns policy. So assuming gold price remains strong, the balance sheet, which we believe to be extremely healthy, remains healthy, then we will look to supplement. But I think it's far more prudent just to go with the minimum commitment for now.

Hi, Richard I think.

What we're saying is we're sticking to what we've made a minimum commitment to do however, we are also sticking to the supplemental returns policy. So assuming gold price remains strong the balance sheet, which we believe to be extremely healthy remains healthy then we will look to supplement but I think it's far more prudent just to go with the <unk>.

<unk> commitment for now okay.

Carey MacRury: Okay, thanks, Guy. Second one's just on the hedge. You make the point that it's been quite financially painful to you, although I understand the reasons why you put it in. Fair to assume that as we go into 26, your comment that you'll be unhedged means that we won't be expected to see any hedging go through the accounts into the next year?

Thanks Scott.

Second one is just.

On the hedge you make the point that it's been quite financially painful <unk>.

I understand the reasons why you would put in fetch machines as we go into 'twenty six youll comment you'll be.

Unhedged means that we might be expecting to see any hedging guys treaty accounts into the into next year.

Ian Cockerill: Anybody who proposes a hedging program for 2026 will have to deliver the proposal along with their resignation slip.

Anybody who proposes a hedging program for 2026, who will have to deliver the proposal along with their resignation Sir.

[laughter].

Carey MacRury: Excellent. Glad to hear that.

Ian Cockerill: I can clarify further if that isn't fair enough.

Excellent.

I can clarify further if that isn't fair enough.

Carey MacRury: So no, no, no new CFO coming. I'm glad to hear that. We like the CFO. The third one is, again, for the CFO. Just on the CFO strength, yeah, it's been very strong, hasn't it? Quarter to date, and that kind of gave you that $49 million tailwind on the cash flow statement. But it's come back a bit in July. Just wondering, are you seeing any pressure on your OPEX line just in terms of that strength and just the way that that puts pressure on your mine operating cash flows? Thanks.

No no no new CFO, Kelly I'm glad to hear that the CFO.

So Edwin as then.

For the CFO and just on the CSI strengths.

Yes, it's been very strong isn't it.

That kind of gave you that $49 million tailwind on the cash flow statement, but it's come back a bit in July.

I'm wondering.

Are you seeing any pressure on your on your Opex line just in terms of.

That strength and just the way that that puts pressure on your minor pricing cash flows.

Thanks.

Guy Young: Thanks, Richard. Yeah, look, the short answer to the question is yes, there is pressure. But I mean, FX, perhaps it's worthwhile just unpacking it a little. So a weakening US dollar versus euro, or therefore a cross-rated ZOF or CFA, is obviously the ratio that we're looking at and worried about. From an income statement perspective, a weaker dollar or a stronger euro or ZOF fundamentally means that in US dollars, which are translated in an average rate in the month, we will fundamentally see an increase in those dollar OPEX and CAPEX numbers. Absolutely right. You will have seen through the year, so you've made mention of the delta. So we saw 4% in the first quarter and a further 8% in the second quarter. And those numbers are creeping into our costs, given that we've got roughly 70% of our total OPEX base in local currency.

Thanks, Richard Yeah look the short answer to the question is yes, there is pressure, but FX, perhaps it's worthwhile just unpacking it a little so a weakening U S dollar versus euro.

We will therefore across <unk> thoughtful with CFA.

Obviously the <unk>.

The ratio of if were looking at and worried about from an income statement perspective.

A weaker dollar or a stronger euro was off fundamentally means that in U S dollars, which are translated in average rates in the month, we will fundamentally see an increase in those dollar opex and capex numbers absolutely right.

You will have seen through the year.

You've made mention of the Delta. So we sold 4% in the first quarter and a further 8% in the second quarter and those numbers are creeping into into op costs.

Given that we've got roughly 70% of our total opex base in local currency.

Guy Young: The stuff that you see flowing through the income statement at the moment is predominantly in and around balance sheet translation. So on the balance sheet, we're in a net asset position, obviously. So if you take our cash, our VAT receivables, etc., those in local currency, when translated using a weaker dollar, fundamentally drive again. And then there is an offset, but you can't see it because we're net asset on the liability side. So the Lafigue loan and our accounts payable, which again, in dollars, will go the other way. So that net body is coming through in the gain and loss line, and it's effectively our balance sheet translation. And then the third and last element from an FX perspective is in and around deferred tax.

The stuff that you see flowing through the income statement in a moment is predominantly in and around balance sheet translation. So on the balance sheet. We are in a net asset position. Obviously, so if you take our cash our vit receivables et cetera.

Those in.

Local currency when translated using a weaker dollar fundamentally drive again and then there is an offset that you can't see it because we are net asset on the liability side said <unk> alone and our accounts payable, which again will go the other way. So that's net 40.

It's coming through in the gain and loss line.

And there is effectively our balance sheet translation and then the third and last element from an FX perspective is in and around deferred tax. So you would have seen some references to it but essentially re translation of the deferred tax balance is coming through as well, but thats going through the income tax line.

Guy Young: So you will have seen some references to it, but essentially retranslation of the deferred tax balance is coming through as well. But that's going through the income tax line. All of those are unrealized FX gains, everything on the balance sheet. And as a result, we clearly remove those for adjusted earnings. Sorry, slightly longer answer to the question. Yes, on the cost line and then on the balance sheet, unrealized reversed out, and we'll have to see where we go from here.

All of those are unrealized FX gains everything on the balance sheet and as a result, we clearly remove those for adjusted earnings.

Sorry, it's slightly longer answer to the question, yes on the cost line and then on the balance sheet unrealized reversed out and we'll have to see where we go from here.

Carey MacRury: That's very helpful. And sorry, my last one is just on the on mana. It seems like your costs have been a little bit up quarter and quarter, but broadly flat. But I also note you've changed your contractor out. So you kind of alluded to it, but should we, as we look into the second half, with a fair stretch to hit your cost guidance and I guess production as well, should we expect to see that mining cost dollar per ton mine start to come down just as you switch out the contractor and then, to your point, grades pick up and those two help you bring the all in sustaining costs back down into range?

Very helpful and sorry, My last one is just on the manner.

It seems like your costs have been a little bit quarter on quarter, but broadly flat.

So now you have changed your contracts or outside.

Can you kind of alluded to it but should we.

Looking to the second half.

Fast stretch to hit your cost guidance and the gas production as well should we expect to see that mining cost dollar per ton mine starts come down just as you switch out the contracts are and then to your point great great pick up in a nice to help you bring the all in sustaining costs down into range.

Guy Young: Richard, if I may, I'll give a slightly broader cost response, and then maybe Jari will want to add specifically on mana. I think just from a cost perspective, clearly Q2 is higher than Q1. But I think it's really important for us to stress that the Q2 basic cost is not the trend for the remainder of the year. We are in line with guidance. So 1150 to 1350 still remains our range. Mana, as Jari said earlier, at the upper end thereof. But Q2 in particular was impacted by a number of things, which I think are important to note. First of all, obviously the slightly lower production because of the lower grades, as we've mentioned and as we'd expected. We did see the inventory unwind, particularly at Hyundai.

Richard if I may I'll give a slightly broader cost response, and then maybe Jerry will want to add specific manner and I think just from a cost perspective.

Early Q2 is higher than Q1.

But I think it's really important to stress that the Q2 basic cost is not the trend for the remainder of the year.

In line with guidance. So 11 50 to $13 50 still remains a range manner as Giora said earlier at the upper end thereof, but Q2 in particular was impacted by a number of things I think are important to note first of all obviously the slightly lower production because of the lower grades as we've mentioned and as we can.

As expected.

We did see the inventory unwind, particularly at Hyundai.

Guy Young: And those answers that were in GIC at the end of first quarter were less carry pump and therefore slightly higher cost. All of that unwinds into second quarter, which Jari mentioned earlier. There is the power, and arguably, as the wet season kicks in, the hydropower availability improves, grid availability improves, and therefore requirement to self-generate at higher cost reduces. So arguably, that shouldn't be there on a look-forward basis. And then the Q2 versus Q1 is also impacted by catch-up in sustaining CAPEX. And given that we're more than halfway through that CAPEX program now, again, that shouldn't be something that is ballooning into the second half. So I just want to reiterate, yes, Q2 was up. But if you look at H1, which is arguably more representative, and if you look at the underlying facts, I don't see that as a carry forward into the second half.

And those ounces that were in GIC at the end of first quarter with less Kari pump and therefore slightly higher cost all of that unwind into second quarter, which John mentioned earlier, there is the power and arguably as the wet season kicks in.

The hydro power availability improves grid availability improves and therefore requirement to self generate high cost reduces so arguably that shouldnt be.

They're on a look forward basis, and then the Q2 versus Q1 was also impacted by a catch up in sustaining capex and given that we're more than halfway through that Capex programme now again that shouldnt be something that is bleeding into the second half. So just wanted to reiterate yes, Q2 was up but if you look at as one which is arguably more representative and if you look.

The underlying facts I don't see that as a carryforward.

Into the second half.

Guy Young: Jari, can I maybe hand to you if you want to chat?

Sorry, I cannot maybe <unk>, if you want to check.

Djaria Traore: Sure. Yes. Hello, Richard. Just to pick up on what Guy has said, obviously, quarter two is not what we should be expecting every quarter. And as you mentioned as well, if you look at the H1 the first six months of the year, you'll see some of the underlying elements which should not be going into H2. But I think on top of all of that, we are looking at some initiatives of productivity as well. If I just take one, which is the year-to-day output, all mine is about 13% ahead of compared to 2024. We're also looking at the way to optimize, especially our cost into power. As I mentioned earlier, currently on mana, the entire mining sector is self-generated power.

Yes, Hello, Richard just to pick up on what gas states.

You'll see quarters too is not what we should be expecting every quarter and as you mentioned as well we should look at the each from the first six months of the year.

You'll see some of the on the line.

Demand, which should not be doing going into <unk>.

On top of all of that we are looking at some initiatives our productivity as well if I just stick one which is the year to date. So all total ore mine is about 13% head of compared to 2024.

We are also looking at ways to optimize personnel cost into power as I mentioned earlier currently on mono tie.

Higher mining sector.

Self generated power.

Djaria Traore: Towards the quarter four, we are looking at changing, upgrading some of the infrastructure, adding a new transformer, which normally will put us fully onto the grid. So there are a few initiatives that we're looking at, and definitely having now one single contractor help in identifying some initiatives as well in order to optimize the mining cost. So we're confident that we will be able to get back into the guidance range.

Towards the quarter, Florida, we are looking at changing upgrading some of the infrastructure, adding on new transformer, which normally will put us fully onto the great. So there are a few initiatives that we're looking at and definitely having now one single contractor helps in identifying.

Some initiatives as well in order to optimize the mining cost.

We are confident that we will be able to get back into the guidance range.

Carey MacRury: Okay. Very helpful. Thank you, team. Much appreciated.

Okay very helpful. Thanks, Tim I appreciate it.

Jack Garman: And the next question comes from Anita Sony with CIBC. Your line's open.

And the next question comes from Anita Soni with CIBC. Your line is open.

Anita Soni: Good morning, Ian, Guy, and team. So a few questions. Unfortunately, on the taxes, can you just give us an understanding of these tax payments? I think with the guidance of 350 to 450, and I thought there was going to be a bigger tax payment in Q2, as per some of your indications in the calls. But how does the rest of the year play out in terms of the tax payments? Is it a big number in Q3 as well, and then not much in Q4?

Good morning, Ian Guy and team.

A few questions firstly on the taxes.

Can you just give us some understanding of these tuck ins I think it was the guidance of 350 <unk> DNA.

There was going to get a bigger pop tax payments in acute care.

Personally there are indications call but.

How does the rest of the year play out in terms of the tax payments, we had a big big number in Q3 as well.

Not much in Q4.

Guy Young: Hi, Anita. Sorry, your line isn't great, but I think if we're talking about tax payments, we had guided 350 to 450 with roughly 55% coming out in Q2, which rough numbers, I think, is about 220. And I think we disclosed a 233 in the quarter. So we're broadly on track with regards to that. If you look at our original guidance, we said that there'd be roughly 25% of that total coming through in Q3, which, again, we see no reason to change. So that should be less than half of what you saw in Q2 in terms of cash tax payments in Q3.

Hi, Anita.

Great.

Your line isn't great, but I think if we're talking about tax payments.

Yes, we had guided $3 50 to $4 50, with roughly 55% coming out in Q2.

Which rough numbers I think is about 220.

And I think we've disclosed the 233 in the quarter. So we're broadly on track with regards to that.

If you look at our original guidance, we said that that would be roughly 25% of that total coming through in Q3, which again, we see no reason to change so that should be.

Yes, less than half of what you saw in Q2 in terms of cash cash tax payments in Q3.

Anita Soni: Okay. And then the next question is with regards to the capital spend. So there was, I noticed there's pretty big stripping numbers at most of the assets. Should we take that as a run rate in terms of how much stripping that you'll be doing for the rest of the year? I think it was almost, obviously, not mana, but the rest of the assets had some big stripping numbers. Are those, will it taper off in the back half of the year, or is it front-end related stripping?

Okay.

And then the.

The next question is with regards to the capital spend.

There was a.

I noticed there.

Pretty big stripping numbers that most of the asset.

Should we take that as a.

Our run rate in terms of how much stripping that you'll be doing for the rest of the year.

I think it's almost.

But.

The rest of the Apple Com.

Couple numbers on those.

Does it taper off in the back half of the year is that right.

Djaria Traore: Thank you, Anita. We're not expecting anything substantially different. We will be doing stripping if and when required. But at this stage in H2, we're not expecting any increase into the stripping that we've seen in H1.

Okay.

Thank you Anita we're not expecting anything substantially different.

We will be doing stripping, if and when required but at this stage each tool, we're not expecting any increase into the stripping that we had seen in each one.

Anita Soni: Okay. So similar. I was actually asking if it would decline, not increase, but so you're saying pretty flat. Okay. And then last question with regards to the oxide or the, sorry, at Sabudala Masawa, sort of the CIL or the, sorry, the tonnage started to decline in Q2 in the CIL. Is it going to continue to decline, or could you maintain levels that bump up from there? Or how should we think about the CIL? Or we know that, you know, obviously, you're looking for alternative ore sources, but I'm just trying to understand how the back half of the year looks at the CIL at Sabudala.

Okay. So similar I was actually asking with decline not increase but.

You're saying pretty flat okay.

Okay, and then last question with regards to the oxide ore.

Sorry, Ed capital, let me follow up on Massawa CLR.

CLR.

Okay.

Sorry, the tonnage started to decline in Q2.

And the CIL.

Is it going to continue to decline or could you maintain levels. The bump up from there how should we think about the CIL or we know that.

Obviously, you are looking for alternative sources, but I'm just trying to understand how the back half of the year looks at the CIO at capital one.

Djaria Traore: Again, so thank you, Anita. Obviously, as we mentioned earlier, we are looking at a way to increase that access to non-refractory clean ore for the CIL plant. But again, this is planned. If we go back to some of the DFS, you will see that this was planned. The decline, again, is scheduled. That's how we're planning for the year. We're not seeing that as being a big issue. I think what we need to really focus on is to accelerate those new mine access to new reserves, as well as the underground condensed volume that we are planning to start developing in 2027, 2028, to ensure that we stabilize and we increase the production going forward.

Again, so thank you Anita just yes, we mentioned earlier, we are looking at.

We aim to increase access to notably factually came also the CIL plant.

Once again. This is then if we go back to some of the DSS you will see that this was planned.

The decline again, it's schedule, that's how we're planning for the year.

<unk> seen that has been a big issue I think what we need to really focus on is to accelerate this need in mind.

Access to new reserves as well as the underground content Maluma.

We are planning to start does not only 2007 2028 towards further will stabilize and we increase the production going forward.

Anita Soni: Okay. Let me ask the question again in a different way. Should we be forecasting the level of CIL ore that you had in Q2, in Q3, and Q4, or should we have that declining?

Okay, Let me ask the question again.

Wei.

Should we be forecasting that the level up.

Oxide CIL or that you had in Q2.

Q3, and Q4 or should we have that declining.

Djaria Traore: Anita, we are going to quarter three, which is a wedding season. So naturally, it will decrease. Again, that will not be anything different than what we've seen every year across on our site in general. So to answer your question, quarter three wedding season, you should see a slight decrease into that oxide.

And even though we are going through what is fair, which is a winning season.

And naturally it won't decrease again that will not be anything different that will be seen.

Every year across the last hike in general.

To answer your question quoted for wedding simply you shall see slight decrease into that oxide.

Anita Soni: Okay. Thank you for that. And then just one last question on the throughput levels. Can you talk about the things that you're doing at Sabudala Masawa to get that 15% increase in throughput?

Okay. Thank you for that and then just one last question on the throughput levels can you talk about the things that you're doing that's abdullah massawa to get that 15% increase in throughput.

Djaria Traore: Sure. Thank you, Anita, again. Some of the initiatives that we're looking at to increase that throughput is, of course, the blend and feed of the stockpile. We're also accelerating the mining at the high grid of node zone. What we already are, we already more or less at 10%, but it's not consistent. So the objective is to maintain that 10% increase above the design that we've already seen, maintain that throughput until the end of the year, and then next year, 2026, add an incremental maybe of 5%. So those are the different things that we're looking at in order to maintain that 10% that we're already more or less achieving.

Sure paint any taken.

Some of the initiatives that we're looking at.

To include that throughput AIDS of course, the blending of the stockpile. We are also accelerating the mining the high grade of nodes.

What we already we already more or less at 10%, but it's not consistent so the objective is to maintain that 10% increase above the design that we've already seen maintain that throughput until the end of the year and then next year 2026 at an incremental.

<unk>, 5%. So those are the different things that we're looking at in order to maintain that 10% that we already more or less achieving.

Anita Soni: Okay. Thanks. My apologies if you've already asked and answered these things. I've just been on dueling conference calls with Cameco and Camas.

Okay. Thanks, My apologies, if you've already asked and answered these things I've just been on dueling conference calls with chemical and cannot ignore that.

Djaria Traore: Not at all. Thank you.

Jack Garman: And the next question will come from Daniel Major with UBS. Your line is open.

And the next question will come from Daniel Major with UBS. Your line is open.

Carey MacRury: Hi. Yeah, thanks. Thanks very much for the questions. The first one is on the tax question again, and thank you very much for improving the clarity of the guides through the year in terms of the cash tax outflow. I guess, you know, this year you've got it to a fixed tax rate, you know, within the range of 350 to 400 in terms of cash tax. You're clearly going to see a lift in profitability this year and accrue more tax. Is there some going to be some sort of catch-up payment? Can you just explain the mechanics of what we should be thinking about in terms of, you know, tax coming out into 2026?

Hi, yes. Thanks.

So much for the questions.

The.

The first one just.

Just on the tax question again.

Thank you very much for improving the clarity of the.

Guidance through the year in terms of the cash tax outflow.

I guess.

This year, you've got it to a fixed tax rate.

Within the range of $3 50 to 400 tons of cash tax you're clearly going to see a lift in profitability. This year and accrue more tax is there some.

Going to be some sort of catch up payment can you just explain the mechanics of what we should be thinking about in terms of.

<unk>.

And our tax coming out into 2026.

Ian Cockerill: Hey, Jan. Yeah, look, we'll do the same again next time round. So we'll give you full visibility and predictions in terms of cash flows as and when we get to the end of the year. But at the moment, the best way to indicatively see it is if you look at the income statement, what we're doing is a quarterly effective tax rate and accruing according to current profits. So the income statement is indicatively what we're going to be looking to pay out next year. We are accruing CIT at the standard effective tax rates based on current year profits. And we are simultaneously putting into deferred tax a 60% charge of what we are anticipating in distributing next year for withholding tax purposes. So the income statement is the best one to follow.

Hey, Dan.

Yes look we will do the same again next time run so we'll give you full.

Full visibility and predictions in terms of cash flows as and when we get to the end of the year, but at the moment.

Best way to indicative Lee C. It is if you look at the income statement. What we're doing is a quarterly effective tax rate and accruing. According to current profit. So the income statement is is indicative Lee what we're going to be looking to pay off next year.

Occurring CIP at the standard effective tax rates based on currency of profits and we are simultaneously putting into deferred tax.

A 60% charge of what we're anticipating and distributing next year for withholding tax purposes. So the income statement is the best one to follow and we will give full guidance similar to that which we did this year when we're in a position to do so at the beginning of next.

Ian Cockerill: And we'll give full guidance similar to that which we did this year when we're in a position to do so at the beginning of next.

Carey MacRury: Okay, thanks. That's helpful. And then the second one, just again on the cash flow dynamics, I think you've got the biggest quarter in terms of minority dividend payments. You've not paid much year to date. I think just 13.8 million in Q2. Can you just remind us on the guidance for the expectation around the full year and the distribution between Q3 and Q4?

Okay. Thanks.

That's helpful.

And the second one.

Just again on the.

On the cash flow.

Dynamics.

I think you've got the biggest.

Quarter in terms of minority dividend payments you have not paid much here today, I think just $13 8 million in Q2.

Can you just remind us on the guidance for the expectation around the full year on the distribution between Q3 and Q4.

Ian Cockerill: Sure. So you're speaking specifically minority interest rather than any of the withholding tax fees.

Sure. So youre speaking, specifically minority interest rather than any of the withholding tax piece.

Carey MacRury: Yeah, minority.

I think a minority of the minority the minority was.

Ian Cockerill: So I think the minority was between 100 and 120 for the year. And we would expect the vast majority of that to be paid in Q3.

100 and 120.

For the year.

And we would expect the vast majority of that to be paid in Q3.

Carey MacRury: Okay. That's useful. Thank you. It's just the next one you mentioned about some build-in VAT receivables. Can you just remind us where you're at for the full year? Sorry, across the group in terms of VAT receivables and what the expectation is over the next 12 months? You mentioned some factoring and some other initiatives.

Okay.

So thank you.

Just last one you mentioned about some build in Vit receivables can you just remind us where you're at for the full year across the group in terms of receivables on what the expectation is and then I saw that you mentioned some factoring in some other.

Initiatives.

Ian Cockerill: Sure. So as a group, we're sitting at around $176 million on VAT receivables as of June. The split is broadly 120 in Burkina Faso, and the remainder is sitting in Lafigue and Sabudala and a little bit of Gurud. Now, when we are talking about VAT receivables, the more problematic balances are the full Burkina Faso balance, and then to a lesser degree, Lafigue's. Lafigue's, as I said in the slides, is more an issue of ramp-up. So having started out last year, we're having to put in place all of the processes to ensure that claims are going in, people understand our story, and ensure that the documentation, the people we're dealing with know us and what it is that we're going to be claiming on a monthly basis.

Sure.

No.

As a group we're sitting at around $176 million on VIP receivables at June.

The split is broadly 120 in Burkina Faso, and the remainder is.

He is sitting in <unk> and $7 and a little bit of group now when we are talking about receivables.

Okay.

The most problematic balances.

The full makena faster balance.

And then to a lesser degree the fee the fee as I said in the slides is more an issue of ramp up so having started out last year were having to put in place all of the processes to ensure that claims to going and people understand our story.

And ensure that the documentation that people were dealing with.

No.

And what it is that we're going to be climbing on a monthly basis. So I think that is more of a ramp up issue than anything else and that should be declining.

Ian Cockerill: So I think that is more of a ramp-up issue than anything else, and that should be declining through the remainder of the year. Sabudala Masawa is also one where we could see some incremental improvement because we've had some process improvements, and the total outstanding may well reign in from the current average four months to about three and a half or three months. So the real issue for us remains Burkina Faso, and that 120 balance, we're looking at a variety of different ways of trying to offset that, either with alternative amounts that we owe the state, and then we continue also to look at alternative factoring options. At the moment, local banks, which is where we used to do our factoring, are not interested in the paper anymore. But we're looking at potential alternative options to try and do something quite similar.

Through through the remainder of the year.

Seven dollar Massawa is also one where we could see some incremental improvement because we've had some process improvements in the total outstanding may well rein in from the current average four months to about three and a half of three months. So the real issue for us remains makena faster than that 120 balance we're looking at a variety of different ways of.

Trying to offset that either with alternative.

Amounts that we owe the state.

And then we continue also to look at alternative factoring.

Options at the moment local banks, which is where we used to do our factoring.

Interested in the paper anymore, but we are looking at potential.

Alternative options to try and do something quite similar so whether that comes off.

Ian Cockerill: So whether that comes off is difficult to say. I think it's a reasonably low probability, but we continue to look at whatever we can to reduce that 120 other than simply waiting for the state.

Got to say I think.

A reasonably low probability, but we continue to look at whatever we can to reduce that 120 other than simply waiting for the state.

Carey MacRury: Okay. Thanks. And just one final question, if I may. You're rapidly bringing down net debt. If we look at your dividend sort of run rate and some of the buyback run rate, you should be moving somewhere towards zero or net cash in the end of the year, even paying north of 400 in cash returns. If we think about the quantum of cash returns in 2026, can you give us a target of where you would kind of ideally get the balance sheet to in terms of net cash position, or above what level would you just distribute 100% of free cash?

Okay. Thanks, and just one final question if I may.

Youll rapidly, bringing down net debt if we look at your.

Dividend run rate and some of the buyback run rate you should be meeting somewhat towards zero on that cash and the end of the year, even paying north of 400 and cash returns. If we think about the quantum of cash returned to 2026 G. Can you give us some.

Target of where you would kind of ideally get the balance sheet too in terms of net cash position or above what level would you just distribute 100% of free cash.

Ian Cockerill: Okay. Here's another unhelpful, rather broad answer. But so what I think we've been very clear on, we'd like to reiterate. Point five is our maximum that we would like to see through a cycle. On the other end of that spectrum, we have said that we have no intention of building a large cash balance. In between there, we remain open to maximizing supplemental returns within the confines of what we have in front of us. So you're absolutely right. In the short term, there are less calls on the cash. CAPEX is reasonably well under control and forecastable, but we want to ensure that we've got a reasonable balance sheet in the build-up to the SFO CAPEX. So I don't think you're ever going to see us move to a very formulaic position of paying out specific percentages of free cash.

Okay.

There's another unhelpful, rather broad answer but.

What I think we've been very clear on we'd like to reiterate.

<unk> five is.

Maximum that we would like to see it through a cycle on.

On the other end of that spectrum.

We have said that we have no intention of building a large cash balance.

In between there we remain open to maximizing supplemental returns within the confines of what we have in front of us. So youre absolutely right in the short term there are less calls on the cash capex is reasonably well under control and Forecastable, but we want to ensure that we've got a reasonable balance sheet and the <unk>.

Up to two the asset through Capex. So I don't think you're ever going to see us move to a very formulaic position of paying out specific percentages of free cash.

Ian Cockerill: We would prefer to maintain flexibility in managing the balance sheet as best we can, given whatever the emerging cash requirements are and subject to gold price. But we have no intention of building big cash balances, and therefore, I think it's fair to assume that ongoing strong supplemental returns are very much top of our capital allocation menu.

We would prefer to maintain flexibility in managing the balance sheet as best we can given what ever the emerging cash requirements and subject to gold price, but we have no intention of building big cash balances net for I think it's fair to assume that ongoing strong supplemental returns are very much top of our capital.

Location menu.

Carey MacRury: Great. Thanks a lot.

Great. Thanks, a lot.

Jack Garman: The next question will come from Jason Fairclaw with Bank of America. Your line is open.

The next question will come from Jason Fairclough with Bank of America. Your line is open.

Jason Fairclough: Yep. Afternoon, guys. Thanks for the presentation. A couple sort of, let's say, simple questions, I guess, for me. Thanks for the slide 48, which lays out the tax payments by the different assets in a corporate level. I was just wondering, and maybe it's for Guy, but can you just talk about the gold price that was the backdrop for generating those tax liabilities? Because I'm just trying to think about how those tax payments step up as we roll forward with these higher gold prices.

Afternoon, guys. Thanks for the presentation.

A couple of sort of.

Let's say simple questions I guess for me.

<unk>.

Thanks for the slide 48, which lays out the tax payments by by the different assets on a corporate level I was just wondering maybe it's for guy, but can you just talk about the gold price that was the backdrop for generating those those tax liabilities.

Just trying to think about how those tax payments step up as we roll forward with these higher gold prices.

Ian Cockerill: Sure, Jason. So the tax payments that you see going through, particularly the site level, we should just bear in mind these are fundamentally payments for last year's tax.

Sure Justin.

<unk>.

The tax payments that you see.

Going through particularly as cyclical we should just bear in mind. These are fundamentally.

Payments for last year's tax.

Jason Fairclough: So that's the 12-month lag to gold price that's driving these tax payments.

Yeah.

So thats, a 12 month lagged gold price, that's driving cash tax payments.

Ian Cockerill: Exactly.

Yeah.

Jason Fairclough: So if it's.

Ian Cockerill: Yeah.

Jason Fairclough: Go ahead.

Ian Cockerill: Yep. No, no, please.

Yes go ahead.

Jason Fairclough: I was going to say, so if I were to sort of, if you like, mark to market or think about a spot tax payment, you know, are we doubling the tax payments versus what we're seeing on that slide 48?

I was going to say so if I were to sort of if you like mark to market or thinking about.

Apart.

Tax payments.

Are we doubling the tax payments versus what we're seeing on that slide 48.

Ian Cockerill: I'm happy to come back to you on exactly what that number would look like. But yes, if you're looking to try and get some sort of proxy, if you looked at our realized gold price per quarter through 2025 versus what we're running at now, it is a significant step up in corporate income tax. That's absolutely correct.

I'm happy to come back to you on exactly what that number would look like but yes, if you're looking to try and get some sort of proxy. If you looked at a realized gold price per quarter through 2025 versus what we're running at now it is a significant step up in corporate income tax that's absolutely correct.

Jason Fairclough: Okay. But I guess the point is, as long as the gold price keeps going up, it's all fine. It's only the year that it rolls over, it gets a bit ugly.

Okay.

I guess the point is as long as the gold price keeps going up it's all fine it's only with the year that it rolls over it gets a bit ugly.

Ian Cockerill: That would be a fair comment. You must be bugging our office.

Accurately.

Back on it you must be bugging arrow.

Jason Fairclough: Okay. Look, the other question I had, and in a way, it relates to some of the questions that have already been asked, which is, I guess, what stops you from being much more aggressive with the buybacks? Like, you know, and again, it depends what gold price you're using, but it's not hard to get you guys trading on a 15% free cash flow yield or something like that. I mean, to me, that's still screamingly cheap. So why wouldn't you still be much more aggressive with the share buyback from here?

Okay.

The other question I had it in a way it relates to some of the questions that have already been asked which is I guess what stops you from being much more aggressive with the buybacks.

And again it depends what gold price you are using but its not hard to get your guys trading on a 15% free cash flow yield or something like that I mean to me that's still screamingly cheap. So why wouldn't you still be much more aggressive with the share buyback from here.

Ian Cockerill: So you're saying that we've not been aggressive enough so far, despite the fact that the numbers that we've given.

So you're saying that we've not been aggressive enough. So far despite the fact that the numbers that we've given.

Jason Fairclough: That is correct, yeah.

That is correct here.

Ian Cockerill: Yeah. Clearly, some people are never happy. Look, I hear what you say. I guess what it is, we're trying to strike the balance between giving a total return to our shareholders. And bear in mind that our shareholders are a very broad church. There are those who absolutely only want cash. There are others who absolutely only want buybacks. And our challenge is to try and strike the balance between the two in terms of what percentage of each do we give in terms of shareholder returns. And then in terms of the overall quantity, you know, that takes into account, you know, the demands on the business, you know, where we are. And yeah, we are inherently conservative in our approach. And yet, and yet, we still have, you know, with what we're doing, we still have, you know, sort of sector-leading returns.

Yes, clearly some people are never happy.

Look.

I hear what you say.

I guess, what it is.

We're trying to strike the balance between.

Giving a total return to shareholders.

And bear in mind that shareholders are very broad church.

Who's who absolutely only won't cash.

Absolutely only want a buyback.

Buybacks.

And our challenge is to try and strike the balance between the two in terms of what percentage of each do we give in terms of shareholder returns and then in terms of the overall quantity.

It takes into account.

The demands on the business, where we are and we are inherently conservative in our approach and yet and yet we still have.

What we're doing we still have some.

Sector, leading returns.

Ian Cockerill: And you know, I hear this story constantly, "Oh, we want more buybacks." Other people say, "Well, I want more cash." You know, I have to try and satisfy everyone. In the processes I'm satisfying nobody, I think that means we're getting the balance about right.

And.

I hear this.

Story constantly all we wrote more buybacks or would you say a lot more cash.

I have to try and satisfy everyone in the processes on satisfying nobody I think that means we're getting the balance about right.

Jason Fairclough: Okay. Fair point, Ian. Thanks a lot, guys. Congrats on the results. Good result.

Okay Fair point Ann Thanks, a lot guys. Congrats on the results good good results.

Ian Cockerill: Thanks, Jason.

Thanks, Jason.

Jack Garman: The next question comes from Amos Fletcher with Barclays. Your line is open.

The next question comes from Amos Fletcher with Barclays. Your line is open.

Jason Fairclough: Yeah, good afternoon, guys. A couple of questions. First one was on Lafigue. I just wanted to ask, where do you see the throughput rates growing to overcoming quarters, given the investments that you're making?

Yeah, good afternoon guys.

Couple of questions.

First of all first one was on <unk> I just wanted to ask.

Where do you see the throughput rates growing to over coming quarters, given the investments you're making.

Djaria Traore: Hello, Emma. Thank you. Obviously, even at Lafigue today, compared to a year ago when we started, we already above the nameplate of about 10%. Going into next year, we will be increasing it more. And if you follow all our other sites, you'll see that we are pretty good, usually increasing our throughput way above the design nameplates. So Lafigue will not be any different. So we expect the Lafigue throughput next year to be well above the 10% or 15%.

Hello, and thank you also to even a ticket today compared to a year ago. When we started were already above the nameplate of about 10%.

Going into next year, we will be increasingly more initial follow on order side, you'll see that wheel.

Good.

Usually increasing our throughput we have all the designs in place so unless we gave will not be any different. So we expect the last he gave throughput next year to be well above the 10 plus 15%.

Jason Fairclough: Okay. And then a question on SFO. I was just wondering whether it's realistic for you guys to, well, so the first question is how are you thinking about the CAPEX and sort of scaling of the plant compared to what you put in the PFS? And then secondly, whether it's realistic to include any of the potential mineralization from Koolu, which is obviously an incredibly early stage at this point, but it looks like it could be potentially quite exciting as well.

Okay.

And then a question on as a fool I was just wondering.

Whether it's realistic for you guys too.

So first question is how are you how are you thinking about the capex and sort of scaling of the cloud compared to what you put in the PFS.

And then secondly, whether it's realistic to include any of the potential mineralization from Hulu.

We're just obviously incredibly early stage at this point.

It looks like it could be potentially quite quite exciting as well.

Ian Cockerill: Okay. Well, let me answer the final question first. Kulu is an entirely separate business. We don't control it. And it's 60 kilometers away from SFO. So in all realistic senses, it must, that would be a standalone operation. As far as the plant is concerned, the PFS looked at 5 million tonnes throughput. And despite the additional sort of ounces that we hope to include by the end of this year, particularly from parlor two and three, we see no reason to increase the size of the plant above 5 million. The danger you have is if you keep on moving the goalposts, you make one change and there's 15 other consequential knock-on changes that you have to bring in. And that's when you start getting real problems with your capital projects and cost overruns and everything. Oh, we hadn't thought about this. We hadn't thought about that.

Let me ask the answer the.

Final question first.

<unk> is an entirely separate business.

Don't control it.

So.

60 kilometers away.

From.

So.

In <unk> <unk>.

Realistic senses.

Most of that will be a standalone operation.

As far as the plant.

Is concerned.

PFS.

Look two 5 million tonne throughput.

Despite the additional sort of ounces that we hope to include by the end of this year, particularly.

Particularly from Paula two and three.

We see no reason to increase the size of the plant above five 5 million.

The danger you have as you keep on moving the Goalposts you made one change in 15.

Consequent Shaw knock on changes that you have to bring in and that's when you start getting real problems.

With your capital projects and cost overruns and everything we hadn't thought about this we haven't thought about that we feel that it's much better to fix certain size.

Ian Cockerill: We feel that it's much better to fix a certain size. The simulations that we did in the initial pre-feasibility, where we looked at everything from 3 to 8 million tonnes, showed that the 5 million tonne production profile was likely to give us the most consistent production profile. Importantly, gave us the opportunity to get up to full capacity much more quickly. So I don't see any change in that. What will happen as Safu, as Jari just alluded to earlier, is as soon as we get up and running, we'll start de-bottlenecking the plant. All our other plants have been anywhere between 40 to 60% higher than nameplate, which will be a combination of just mild tweaks, de-bottlenecking, and in some instances, maybe putting on an extra line of tanks or something like that. And that's the way that we'll do it.

The simulations that we did in the initial pre feasibility will be looked at everything from three.

Two to 8 million tonnes shows that 5 million ton production profile was <unk>.

Likely to give us the most consistent.

Production profile importantly gave us the opportunity to get up to.

Full capacity much more quickly so I don't see any change.

In in that.

What will happen to the suffer as Jeremy just alluded to earlier is as soon as we get up and running we'll start debottlenecking the plant.

All of our other plants have been anywhere between 40% to 60% higher than nameplate.

Which would be a combination of just minor tweaks debottlenecking and in some instances navy putting on.

An extra line of tanks or something like that.

And that's the way we'll do it.

Ian Cockerill: So it's, again, trying to make sure that we have the right size up front, but making sure that we design our plant, that there's sufficient flexibility and scope to increase it, and that we don't make too tight a footprint. So if you want to add anything extra, there's space to do it. So I don't think you're definitely not going to see any change from our current design, which is 5 million tonnes. That's what we'll stick to. But over the life of the mine, will it increase from 5 million tonnes? I would say almost with 95% certainty.

So it's again.

Trying to make sure that we have.

The right size upfront.

But making sure that we design a plant the sufficient flexibility in scope.

To increase it we don't make too tied to footprint. So if you want to add anything extra.

This space to do it so I don't think you're definitely not going to see any change from our current.

Design, which is 5 million tons, that's what we stick to that.

Over the life of the mine will it increase from 5 million tons, I would say almost with 95% certainty.

Jason Fairclough: Okay. That's great. And then last question I just wanted to ask. Has there been any updates on the cote de voie royalty rates potentially being increased?

Okay. That's great and then last question just wanted to ask is there been any updates on cote d'ivoire royalty rates potentially to increase.

Ian Cockerill: The state has come back, you know, and they've insisted on increasing royalties by 2%. They said, "Look, you know, this is not part of our agreements." They said, "But we've put it in the budget." So that's why they want to do it. It is now basically, it's a bum fight between, thankfully, the chamber rather than individual mining houses and the state. I have to say the Minister of Mines is very supportive of our position. But obviously, there are budget squeezes, and they want to extract every last dollar that they can. But rest assured that we're not taking it lying down.

The.

As states have come back.

And they've insisted on increasing royalties by 2%.

We said look this is not part of our agreements they said that we've put it in the budget.

So.

That's why they want.

It is now.

Basically it's a bun fight between thankfully the chamber.

Robyn individual mining houses.

The state has to say the minister of mines.

<unk> is very supportive of that position.

Obviously.

Budget squeezes.

To extract every last dollar.

Rest assured that we're not taking it lying down.

Jason Fairclough: Okay. Got it. All right. Thanks very much, guys. Best of luck.

Okay got it alright, thanks, very much guys best of luck.

Jack Garman: And the next question will come from Marina Calero with RBC Capital. Your line is open.

And the next question will come from Marina Calero with RBC capital. Your line is open.

Marina Calero: Hi. Good afternoon. Thanks for the call. Most of my questions have been answered, but perhaps a follow-up on the topic of distributions to shareholders. You mentioned you don't intend to build a very large cash balance. Can you maybe tell us what sort of cash levels would you like to build towards the end of this year, considering the upcoming construction of the SAFO?

Hi, good afternoon, thanks for the call.

Most of my questions have been answered, but perhaps a follow up on the topic of distributions to shareholders.

You mentioned you didn't have you don't intend to build a very large cash buttons can you maybe tell us.

<unk> would you like to build towards the end of this year considering the upcoming construction of the platform.

Ian Cockerill: Hi, Maria. Sure. Again, I'll give you an indicative answer. We don't actually have a specific target of cash in mind. What we would like to do, though, is just continuously consider the calls on our cash. And as and when we've earned it, we obviously review what that future cash requirement is going to be, take an assessment on that and the potential returns associated with it, and then effectively consider supplemental returns. So without a specific target in mind, the only hard number we had was the leverage ratio, which thankfully current circumstances mean that that's not that relevant. The SAFO capital needs to be finalized. So we mentioned earlier on the call, the DFS will be completed by the beginning of 2026.

Hi, Andrea.

Again, I'll give you an indicative answer.

We don't we don't actually have a specific target of cash in mind.

What we would like to do though is just continuously consider calls on our cash and.

As and when we've earned it.

Obviously review what that future cash.

Requirements is going to be taken assessment on that and the potential returns associated with it and then effectively considered supplemental returns so without a specific target in mind. The only hard number we had was the leverage ratio, which thankfully current circumstances mean that.

It's not that relevant.

The software capital needs to be finalized.

So we mentioned earlier on the call. The DFS will be completed by the beginning of 2026, when we have clarity on that capital and another quarter or two behind us in terms of cash flow generation, we'd be in a better position to talk about.

Ian Cockerill: When we have clarity on that capital and another quarter or two behind us in terms of cash flow generation, we'd be in a better position to talk about incremental supplemental returns. And at a point later in the year, we would be coming up for a renewal of our overall shareholder returns policy, which we have only set out for a couple of years when we last did it. So clarity will come. But until then, I think, again, please do bank on the fact that we are looking at supplemental returns. And given cash flow generation and current gold prices, those will continue into the second half. But we aren't going to be more specific than that at this point.

Incremental supplemental returns and Thats a point later in the year, we would be coming up for a renewal of our overall shareholder returns policy, which we have only set out for a couple of years when we when we last did it so clarity will come.

But until then I think again. Please please do bank on the fact that we are looking at supplemental returns and given cash flow generation and current gold prices. Those will continue into the second half, but we aren't going to be more specific than that at this point.

Marina Calero: Okay. That's very clear. Thank you.

Okay, that's great to hear thank you.

Yes.

Jack Garman: And the next question will come from Mohammed Sidi Bey with National Fence. Your line is open.

And the next question will come from my habit Muhammed.

<unk> with National Bank. Your line is open.

Ian Cockerill: Thanks, operator. Good morning, Ian and team. I guess a lot of questions under capital returns. So I'll go ahead there and understanding that you have a balanced approach to it. But just as you release your capital allocation, so you have a lot of free cash flow that's expected to come in the second half of the year and call it into 2026 prior to a SAFO going online. You've increased your exploration spend as you're seeing positive results. But how do you think about, I guess, organic growth versus inorganic growth within your capital allocation priorities? Thank you. Yeah. Great, great question, Mohammed. Look, I said before, and I'll repeat again, I mean, we are in a very fortunate position that we have an excellent organic growth pipeline. We have lots of opportunities. And it's not just a SAFO.

Thanks, operator, good morning, John and team I.

I guess a lot of question under our capital return. So we'll go out there and understanding that you have a balanced approach here, but just as it relates to our capital allocation. So you have a lot of free cash flow that is expected to come in on the second half of the year and call. It into 2026 prior to SaaS, we're going online.

You have increased your exploration spend as youre seeing positive results, but how do you think about I guess organic growth versus inorganic growth within your capital allocation priorities. Thank you.

Yes, Greg Great question Margaret.

I said before and I'll repeat again I mean, we are in the very fortunate position that we have excellent.

Organic growth pipeline, we have lots of opportunities and it's not just a saw food.

Ian Cockerill: We're looking at, as you know, for instance, the ET Donut, the ability to really sort of crank up the size of that operation and access more ore. So we're not short of opportunities internally. But running in parallel to that, and certainly in the 18 months that I've been in this role, we've never stopped looking at inorganic opportunities. But we've never seen anything that satisfies our very rigid return criteria. So we haven't done anything because we haven't seen anything that we think materially would make a difference to the group. But we will continue to look. We are certainly not averse to inorganic opportunities. But priority one is certainly shareholder returns, looking at our own opportunities, and then the inorganic opportunities come along behind that as well. Thanks a lot, Ian. That was everything from my end. Congrats on a good quarter. Thank you.

Looking at as you know the for instance, the <unk> Donuts.

The ability to.

Really sort of crank up the size of that operation.

Access more or so we're not short of opportunities internally.

But running in parallel to that and certainly in the 18 months that I've been in this role we've never stopped looking.

Any opportunities, but we've never seen anything that satisfies a very rigid.

Return criteria.

So we haven't done anything because we haven't seen anything that we think materially would make.

<unk> to the group.

But we will continue to look we are certainly not averse to inorganic opportunities but.

Priority one is certainly shareholder returns looking at our own opportunities and then.

The inorganic opportunities comes along behind that as well.

That was everything from my congrats on a good quarter.

Thank you.

Jack Garman: Ladies and gentlemen, this concludes today's presentation and conference call. Thank you for joining. You may now disconnect.

Ladies and gentlemen, this concludes todays presentation and conference call. Thank you for joining you may now disconnect.

Okay.

[music].