Q3 2025 Endeavour Mining PLC Earnings Call

Speaker #1: After management's presentation, there will be a question-and-answer session. So for those who wish to ask a question, please dial into the phone line. Please note that due to time constraints, we will From covering analyst.

Speaker #1: be prioritizing questions. If each analyst could limit themselves to two questions before jumping back in the queue. Today's conference call is being recorded, and a transcript of the call will be available on ENDEAVOR's website tomorrow.

Speaker #1: I would now like to hand the call over to Relations, Jack ENDEAVOR's Vice President of Investor Garman.

Speaker #2: Hello, everyone, and welcome to ENDEAVOR's third quarter 2025 results webcast. Apologies for the slight delay getting started. Please note our usual disclaimer. On the call today, I'm joined by Ian Cockrill, Chief Executive Officer, Guy Young, Chief Financial Officer, Jaria Traore, Executive Vice President of Operations and EVP of Exploration.

Speaker #2: Today's call will start with Ian Guy walking through the financials, presenting the highlights, followed by Jaria will present our operating results by mine, and Sonia will provide an exploration update before handing back to Ian for his closing remarks.

Speaker #2: We'll then open the line up for questions. With that, I'll now hand over to Ian.

Speaker #3: Thanks very much, Jack. Hello, said, apologies. everybody, and again, as Jack Unfortunately, me and the team, we're here in Dakar today, and unfortunately, Orange decided to do some unscheduled maintenance on the line, so hence the delay.

Speaker #3: But glad to say we're back up and running. As I said, we're dialing in today from Dakar, having just returned from our Sabadala Masau mine with the board.

Speaker #3: We had a very productive trip, and it was pleasing to see the strong and consistent performance specifically from the BIONZ plant. Q3 2025 has marked another quarter of solid operating performance for ENDEAVOR.

Speaker #3: As previously guided, production was a little lower, with costs a little higher than the prior quarter, with operational performance set to improve going into Q4.

Speaker #3: Our strong year-to-date production leaves us well positioned to achieve the top half of our production guidance, with 82% of the low end of the range already achieved.

Speaker #3: Meanwhile, our year-to-date all-in sustaining costs of $1,365 per ounce is on track to achieve our guidance, accounting for the impact of the higher gold prices on royalty costs.

Speaker #3: Looking ahead, we're focused on our organic growth pipeline. On slide seven, you can see our performance so far this year. We've maintained a low loss-time injury frequency rate significantly below the industry average, and we had no loss-time injuries during the quarter, as we continue to strive for zero harm.

Speaker #3: We've produced 900 and 11,000 ounces year-to-date, and with a strong Q4 outlook, we're well positioned to achieve the top half of our production guidance.

Speaker #3: Our year-to-date all-in sustaining costs of $1,362 per ounce is on track to achieve the full-year guidance. We have seen approximately 103 dollars per ounce impact on royalty costs from the higher realized gold of $2,000 per ounce.

Speaker #3: Accounting for this, our all-in sustaining cost is in the middle of Q4. Performance is expected to be an improvement over Q3. Turning to slide eight, our year-to-date performance has significantly improved this year compared to the guidance range and last year.

Speaker #3: Following the startup of our two projects in Q3 2024, we've produced 170,000 ounces or 23% more so far this year and are all-in sustaining margin is 90% higher than last year, aided, of course, by the strong gold price.

Speaker #3: While our margin has the gold price, it is important to improved significantly, thanks largely to highlight that our all-in sustaining costs remain firmly in the first cost quartile, despite the gold price-driven increases in our royalty costs.

Speaker #3: And amongst the best of our peers year-to-date. While we expect to see all-in sustaining costs increases across the sector in the near term, we will continue to focus on controlling what we can control: delivering productivity initiatives and the development of our low-cost pipeline projects, which will more than offset any cost increases in the medium term.

Speaker #3: Firstly, through our tier one ASAPU project, which continues to advance on track, with the environmental permit now approved, and the definitive feasibility study expected in early towards first gold in 2026, we're making good progress H2 2028.

Speaker #3: Secondly, we're accelerating our exploration program, primarily at our cornerstone mines, but also through our greenfield programs, where we're expanding our long-term organic growth options.

Speaker #3: And we'll be announcing our new exploration strategy in the coming weeks. On the pipeline to strengthen our financial side, our solid Q3 performance underpins significantly improved free cash flow, which is expected to increase materially in Q4 and into next year.

Speaker #3: Year-to-date, we've generated a record 680 million dollars, and over the past 12 months, we've generated nearly a billion dollars, a 19% free cash flow another record that's equivalent to yield from the start of Q4 last cash flow has supported our balance sheet strength, and we've seen improvements in our year.

Speaker #3: net debt and leverage, which remains constantly below our target. We also significantly reduced our gross debt, paying down the balance of our RCS during the quarter.

Speaker #3: and strong cash flow generation, we continue to increase shareholder returns, returning 233 million dollars so far this year, already exceeding our minimum This commitment, and with the With solid operational performance announcement of our H2 dividend in January, we expect to return the minimum of 346 million dollars to shareholders for the complete year.

Speaker #3: In January, we'll also announce our updated shareholder returns program. We expect to significantly increase returns and continue to be sector-leading throughout the upcoming ASAPU build phase.

Speaker #3: With strong momentum built over the last 12 months and an even stronger outlook ahead, we're well positioned for sector-leading organic growth and sector-leading shareholder returns.

Speaker #3: On slide 10, our strong year-to-date operating performance coupled with strong prices translated into 110% increase in adjusted EBITDA compared to the same period last year, to more than 1.6 billion dollars.

Speaker #3: Our adjusted EBITDA margin also increased by 10 percentage points to a very healthy 55%. We translated this performance into stronger free cash flow, as you can see on slide 11.

Speaker #3: For the first three quarters of the year, we generated 680 million dollars of free cash flow, and over the last 12 months, million dollars, all the 19% free generated 948 cash flow yield from the start of Q4 24.

Speaker #3: As we look forward, we expect stronger operational performance in the coming quarter, coupled with reduced seasonal taxes and higher gold prices. This will underpin even stronger free cash flow generation.

Speaker #3: slide 12, you can see that given our On strong operational and financial performance, we've continued to increase our shareholder returns. During the quarter, we paid our record H1 2025 dividend of 150 million dollars, which we've supplemented with 83 million dollars of share buyback so far this year.

Speaker #3: Total returns paid, having come to 233 million dollars, exceeding the two 25 million dollar minimum dividend. And with our H2 25 dividend to be announced in January, which will be a minimum of 112.5 million dollars, we expect to return that minimum 346 million to shareholders this year, and that's before any supplemental dividends for H2 or any buybacks for Q4.

Speaker #3: On slide 13, we've returned over 1.4 billion dollars to our shareholders over the last four and a half years, 83% higher than our minimum commitment over the period.

Speaker #3: And that's equivalent to 72% of our free cash flow generation over that period. Demonstrating our commitment to returning supplemental cash to our shareholders. Looking ahead, we'll be unveiling our updated shareholder returns program early next year, covering the next growth phase.

Speaker #3: And we expect to outline significantly higher minimum commitments going forward and maintain the sector-leading returns that you've all become used to through our upcoming growth phase.

Speaker #3: On the growth side, our outlook compares very favorably against the consensus growth outlooks for our peers, and that does not include some of the brownfields opportunities that we are advancing, which can supplement this outlook possibly even further.

Speaker #3: A significant part of this growth is expected to come from our tier one ASAPU project, in Côte d'Ivoire, which you can see on slide 15.

Speaker #3: The ASAPU project continues to advance with a definitive feasibility study tracking for completion in Q1 26. We were very pleased to receive the environmental permit approval in September, which we believe is a significant milestone towards full project approval.

Speaker #3: With a last major approval being the exploitation permit, which we expect towards the end of Q1 next year. On slide 16, you can see we've continued to accelerate exploration.

Speaker #3: We've made good progress at suburb dial Masawa, Hyundai, and ASAPU. We're also looking at other tier one gold provinces to strengthen and diversify our long-term organic growth outlook.

Speaker #3: Our aim is to have multiple potential development projects, each competing for internal capital, that extend our pipeline even beyond ASAPU. We completed the first transaction with Kulu Gold in Côte d'Ivoire last year, and just recently, we completed the second transaction with Istar Resources in Kazakhstan, a relatively modest 5 million dollar investment over a two-year period to identify potential tier one targets in one of the world's most prolific and underexplored gold provinces.

Speaker #3: Sonia will take you through this in a little bit more detail later on. But before I hand over to Guy to go through the financials, I just wanted to touch on our commitment to ESG and our social licensed to operate.

Speaker #3: Sustain analytics has improved our score and reiterated our low score rating. Which again positions us as the best rated gold producer in the sector, recognizing our long-term work on ESG.

Speaker #3: We're also proud to see recognition for the work we're doing reflected in our host countries. With national honors including best mining company in Senegal and best company committed to local content in Burkina Faso, and congratulations to ITI's general manager, Bruce Soro, for winning the national award of manager of the year in Côte d'Ivoire.

Speaker #3: These recognitions highlight our deep commitment to developing and promoting local talent, boosting local economies, and empowering our host communities. With that, let me pass you over to Guy to talk you through our financial results.

Speaker #3: Guy, over to

Speaker #3: you. Thanks very

Speaker #2: much, Ian. Moving straight into our quarterly financial results. Without going through all of the details on slide 19, I'll just pick out some of the key line items that I will come to later on in the slides.

Speaker #2: Our production in Q3 was slightly lower, and our costs slightly higher than Q2. In line with our mind sequence, and as noted at each of our quarterly presentations this year.

Speaker #2: This resulted in slightly lower earnings, whilst operating cash flow before working capital improved by 33%, and free cash flow improved by 59%. Benefiting from seasonally lower withholding and income taxes, as well of course as higher gold prices.

Speaker #2: Turning to slide 20, our operational performance remained solid during Q3, and we are on track to achieve the top half of our production guidance.

Speaker #2: With costs adjusted for the impact of higher gold prices on royalties, also within the guidance range. Production declined during the quarter due to lower grades processed across the portfolio.

Speaker #2: Coupled with the impact of the wet season, which reduced throughput at Hyundai and Lafegue specifically, and was exacerbated by the acceleration of production in H1 at Hyundai to de-risk our annual production targets.

Speaker #2: Our all-in sustaining margin decreased slightly. Despite the higher gold prices, due to lower grades processed, lower mining and processing productivity as a result of the wet season, and the impact of higher gold prices on royalties.

Speaker #2: Moving to slide 21, our adjusted EBITDA decreased quarter over quarter due to lower production at slightly higher costs. While the impact of higher gold prices was lessened by the realized losses on financial instruments related to the settlement of the gold collar.

Speaker #2: Our operating cash flow increased by 22% quarter over quarter, as shown on slide 22. Mainly due to the lower withholding and income tax payments, as well as the higher gold prices.

Speaker #2: The majority of our income taxes and all of our withholding taxes have now been paid for the year, with less than 15% of total taxes outstanding and to be paid in Q4.

Speaker #2: With improved production and costs expected, coupled with lower cash taxes and higher gold prices, we're extremely well positioned to deliver stronger operating cash flow in Q4.

Speaker #2: If we turn to slide 23 now, and compare Q3's operating cash flow with Q2's, the improvement was driven by, firstly, a 97 dollar per ounce increase in the realized gold price to 3,247 dollars per ounce, inclusive of the impact of the realized losses on gold collars.

Speaker #2: A decrease in cash operating expenses as a result of lower production and a stockpile build, lower income taxes paid due to the timing of payments in the region, generally being more weighted towards Q2.

Speaker #2: And the timing of withholding taxes, which are typically paid in Q2 and Q3, but were expedited this year. Reflecting an improvement in the efficiency of the upstreaming process internally and with the West African Central Bank.

Speaker #2: These increases were offset by lower gold sales related to lower production, and a working capital outflow related to inventory and receivable buildup that I'd like to walk you through in more detail now.

Speaker #2: Slide 24 shows the two key drivers of the working capital increase of 85 million dollars in the quarter. Being inventory and receivables. The majority of the inventory increase, both in the quarter and year to date, is due to stockpile increases at Sabadal, Masawa, Lafegue and ITI.

Speaker #2: Stockpiles have increased at Sabadal, Masawa as we have mined and stockpiled the exceptionally high grade Masawa North Zone deposit, which we expect to start processing in the second half of next year.

Speaker #2: At Lafegue and ITI, we've also been accelerating mining activity to build stockpiles, and are expecting to see continued improvement from the plants which will draw down on these stockpiles starting in year.

Speaker #2: The increase in receivables is Q4 of this entirely due to higher VAT receivables, and exacerbated by a foreign exchange revaluation of more than 20 million dollars year to date.

Speaker #2: In Burkina Faso, VAT refunds continue to be delayed this year, except for an offset arrangement of 23 million dollars in Q3, that is reflected in financing activities in the cash flow.

Speaker #2: We are actively looking at opportunities to resolve this through various factoring solutions to help expedite the receipt of these refunds, which should see a reduction from next year.

Speaker #2: In Côte d'Ivoire, VAT refunds are processed quarterly. And at our new Lafegue mine, the setup of the administrative process to claim these VAT refunds has been slow.

Speaker #2: We've started to receive VAT reimbursement claims in Q3, and we expect this to now start accelerating into next year. In Senegal, where we have monthly VAT refunds, they continue as usual.

Speaker #2: With a slight buildup related to the startup of the BIOX plant, and additional VAT being paid. We expect this to normalize from early next year.

Speaker #2: While we expect a full year of working capital outflow, we should start seeing progressive improvements in both our inventory and receivables from Q4, and we'll further accelerate this improvement into 2026.

Speaker #2: In terms of our free cash flow shown on slide 25, we continue to generate strong free cash flow in Q3, delivering 166 million dollars.

Speaker #2: $61 million higher than the prior quarter, due to the lower cash taxes and higher realized gold prices I've already touched on. As mentioned, we expect free cash flow to grow in Q4, with the improved operational performance, lower taxes, and higher gold prices.

Speaker #2: Moving now to slide 26, the strong free cash flow generation has allowed us to strengthen our balance sheets and reduce our leverage to 0.21 times net debt to adjusted EBITDA, comfortably below our targets of 0.5 times.

Speaker #2: Given our strong cash flow outlook, our low leverage position, our low leverage positions us well ahead of our upcoming growth phase, to be able to deliver our organic growth project and continue paying sector-leading shareholder returns.

Speaker #2: As I've mentioned in the past, we are not looking to build up a net cash position, as we can comfortably meet our strategic objectives with leverage below 0.5 times.

Speaker #2: On slide 27, we're pleased to have materially reduced our gross debt through the full repayment of our revolving credit facility during Q3. We paid down 472 million dollars quarter on quarter, and reduced gross debt by 38% to 678 million dollars.

Speaker #2: We expect this to be reduced further over the coming years. We've progressively paid down our Lafegue term loan in line with the amortization schedule.

Speaker #2: Finally, moving on to net earnings on slide 28 and focusing on just the key items impacting the quarter, we incurred a $49 million loss on financial instruments.

Speaker #2: Which included a 69 million dollar realized loss on gold collars, which was partially offset by an unrealized gain on the outstanding gold collars for Q4.

Speaker #2: The final delivery into our gold collar program will be 50,000 ounces at the end of this quarter. Which, based on providing gold prices, should support improved cash flows in 2026.

Speaker #2: Our income tax expense was significantly low during the quarter, this was due to lower taxable profits and lower withholding taxes recognized. Our deferred tax expense was also higher due to movement in foreign exchange on the opening deferred tax balances and the accrual of FY25 withholding taxes.

Speaker #2: Adjustments were limited during the quarter as the unrealized gain on gold collars was largely offset by other expenses and foreign exchange on our deferred tax balances.

Speaker #2: We reported another strong quarter of adjusted net earnings per share of 66 cents, albeit slightly below the prior quarter, largely due to the lower earnings from operations, and the higher realized loss on gold collars.

Speaker #2: Thank you, and with that, I'd like to hand over to Jaro. Thank you, Gary. During quarter three, I'm pleased to report that we maintained our industry-leading safety record.

Speaker #2: With a long-time injury frequency rate of 0.05, unchanged from quarter two 2025 for most importantly, we had no long-time injury. While our safety performance position of among the safest mining companies globally, we remain vigilant and we reject complacency.

Speaker #2: We continue to focus on training, to foster the strong safety culture that we have across the business. Moving on to slide 31, quarter three marked another fully quarter of operating performance.

Speaker #2: Which contributed to our strong year-to-year year-to-date production of 911,000 ounces, and pushed the company on track to achieve the top half of our production guidance range.

Speaker #2: On cost, we're pleased with the year-to-date performance, with all interesting costs of 1,362 dollars per ounce, which has been impacted by 103 dollars per ounce of higher royalty due to higher gold prices than our guidance, set at 2,000 dollars per ounce.

Speaker #2: Adjusting for this impact, our all interesting cost is firmly in the middle of the guidance range. Across the portfolio, all the assets are on track to achieve the production guidance.

Speaker #2: With Hyundai and Sabadella Masawa, expected to achieve the top half of the range. While Lafegue is expected to achieve the lower half. On cost, ET Sabadella Masawa Hyundai and Lafegue are on track.

Speaker #2: With Lafegue expected to land near the top end, and and MANA expected to be above the top end of the range. Despite this, at the group level, we are well positioned to achieve our guidance range, when accounting for the impact of royalties.

Speaker #2: I will now run through the mind-by-mind details, starting with our mind of ET on slide 32. Production decreased quarter on quarter as expected, with processed lower grade ore from the Le Plaque and ET pits in line with the mine sequencing.

Speaker #2: All interesting costs increased, driving primarily by lower gold sales volume, higher royalties due to increased gold price and higher sustaining capital. ET is on track to achieve its 2025 production and cost guidance.

Speaker #2: And we are evaluating opportunities to reduce mining costs through development of the ET Donut. We should provide us efficiencies by deploying an hybrid fleet mining fleet within an expanded optimized pit over the coming years.

Speaker #2: Let's now turn our attention to our Hyundai mine on slide 33. Hyundai had a very strong start of the year, as we have accelerated high grade into H1, to de-risk the impact of the wet season.

Speaker #2: And as expected, production decreased quarter on quarter. On cost in quarter three, we saw all interesting costs decrease. Driving primarily by lower sustaining capital, as we're stripping requirement eased.

Speaker #2: Hyundai is well positioned to deliver production in the top half of the guidance range. With costs well in line. As we have highlighted previously, looking ahead to the next year, we expect we will continue stripping at the vendor loan main pit phase three cutback, and mining lower grade from Kerry West and vendor loan.

Speaker #2: Which will result in high costs for year. We should progressively the first half of the improve as the stripping concludes giving access to higher grade ore.

Speaker #2: Moving now on to MANA on slide 34. Production declined slightly in quarter three. As we mine and process lower grade from the 100 ground deposit.

Speaker #2: While the costs increased slightly due to the lower grade, lower production and sales, and higher gold prices impacting royalty costs, we are pleased with our production performance at MANA.

Speaker #2: But there is still work to be done on cost. Importantly, we are not completing the changeover of our underground contractor. And we expect productivity to start realizing some of the benefits.

Speaker #2: Including a significant increase in development rate and total development meters next year. Driven by expected improvement in equipment availability, as well as the operating efficiencies.

Speaker #2: By using one single underground contractor. Which we expect will drive unit cost improvement into next year. At the same time, we are improving the underground mine power stability.

Speaker #2: Through the installations of a transformer and the automation of our on-site power plant, to smooth switching between the grid and self-generated power. Combined, this initiative should allow us to increase our reliance on the lower cost grid power, for the underground from early next year.

Speaker #2: We should also support cost improvement. For the year, MANA is well on track to achieve the production guidance. But costs are expected to be above the guided range, due to the reliance on self-generated power for the underground and higher sustaining capital, as we are accelerating development in the 100 deposit to gain access to higher grade more quickly.

Speaker #2: At Sabadella Masawa, on slide 35. Production decreased only slightly in quarter three. As lower grades were processed through the CIL plant. Despite higher throughput and recovery through the CIL plant and higher grade as well as recovery through the BIOX plant.

Speaker #2: On all interesting costs, increased largely due to the impact that the unusually long and heavy rainfall had on mining and processing productivity, as well as higher royalty costs prices.

Speaker #2: It's pleasing to see the due to higher gold technical review at Sabadella Masawa starting to positively impact performance. Following the acceleration of mining activity at Masawa Central Zone, we are now mining consistent higher grade.

Speaker #2: Which came in at over four grams per ton for quarter three. And on recovery in the BIOX plant, we were pleased as well to achieve an average of 82% for the quarter.

Speaker #2: Which is a significant improvement from where we started last year. And well on track to achieving our life of mine target of 85%. Recovery improvement has been driven partly by increased and better quality fresh ore from Masawa Central Zone.

Speaker #2: But also better fit consistency which allow us to optimize flotation control and flotation tail leaching. We expect to drive more improvements as we optimize the gravity circuit later this year.

Speaker #2: Into next year. Looking ahead to quarter four, we expect higher production from the CIL plant, due to improved throughput and grades. While our production from the BIOX plant is expected to remain consistent.

Speaker #2: Position loss will achieve the top half of the production guidance. With costs in line with guidance. Looking ahead to next year, we are continuing to drive the technical review forward.

Speaker #2: To outline an incrementally improved production outlook. As we accelerate underground development to drive further production improvement over the coming years. Lastly, turning to LAFIGUE on slide 36.

Speaker #2: Production declined during quarter three, as we saw lower throughput. Though a 35% higher year on year. And reduced grade mine and process from the main pit.

Speaker #2: As mining activity shift towards stripping to accelerate access to more higher grade, to support the processing plant. Which is now consistently running above design nameplate.

Speaker #2: All interesting costs increased. But mainly due to lower gold sales and higher royalty costs due to gold prices. As we move into quarter four, we are expecting grade and cost to improve and LAFIGUE is tracking towards the lower half of its four-year production guidance.

Speaker #2: With all interesting costs near the top end of the range, due to lower level of production. I will now hand over to Sonia, to walk through to walk you through our exploration highlights from the quarter.

Speaker #2: Sonia? Thank you, Sonia. I'm pleased to be joining the quarterly webcast to provide you with an update of our exploration activities and some of the key properties.

Speaker #2: This is also a timely announce our new exploration strategy for the next five years update as we expect to later this quarter. The new strategy will underpin our continued sector-leading organic growth.

Speaker #2: At Sabadella Masawa, on slide 38, we are advancing two high-priority exploration targets called MAKANA and KAUDARA. And MAKANA, we are accelerating resource definition of two high-grade non-refractory mineralized deposits.

Speaker #2: This could potentially support the near-term mine planet Sabadella Masawa and offsetting some lower-grade fit and improving production. KAUDARA is a potentially large non-refractory resource located approximately 35 kilometers south of Sabadella Masawa and can support a significant increase in the endowment and provide increased life of mine of optionality.

Speaker #2: Made and reported are expected next year. Moving to HUNDE, on slide 39, we have increased our exploration budget as we continue to drill high-grade intercepts in the LUDIP deposit.

Speaker #2: The target looks to be very large and very high grade, and could support a material improvement in the mine plan. We expect to have a made and reported for the LUDIP in Q1 2026.

Speaker #2: Elsewhere in the operating portfolio, we have completed the drilling depots at MANA to delineate the continuation of the 100 underground deposit. ERITI, we are developing several early-stage opportunities along the ET trend and at LAFIGUE, we expect to start drilling on several near-mine targets early next year.

Speaker #2: Moving now to slide 40 and our Tier 1 ASAFU project. During Q3 2025, we completed a 23,000 meter drill program at the PALA trend 2 and PALA trend 3 targets.

Speaker #2: Located a few kilometers to the west of the main ASAFU deposit, drilling successfully expanded the mineralization over a three-kilometer strike length along a similar turquoise and beryllium contact to the one at the ASAFU deposit.

Speaker #2: On the southwest side of the ASAFU basin. We expect to complete the definition of made and resources for the PALA trend targets later in Q4.

Speaker #2: And finally, on slide 41, I want to give you a bit more color on our new joint venture with IFSAR Resources, the Ian mentioned earlier.

Speaker #2: While our new exploration strategy will prioritize existing operation, we will also be increasing our greenfield exploration spend, focused on strengthening and diversifying our exploration pipeline to support our longer-term organic growth.

Speaker #2: While we expect most of this growth to come from our existing West African portfolio, we are also entering into some highly prospective Tier 1 gold provinces with low exploration maturity and where we have an early mover advantage.

Speaker #2: We are taking a low-risk and low-cost venture approach. Giving us the ability to leverage our joint venture partners' technical expertise and their knowledge of the operating environments in this region.

Speaker #2: We signed a joint venture with IFSAR Resources. A Kazakhstan-based gold and base metal explorer. Targeting two highly prospective belts in northern and central Kazakhstan.

Speaker #2: Within the highly prospective central Asian orogenic belt. The OSS multiple Tier 1 gold deposit. We will invest 5 million dollars over a two-year period to earn 51% interest in the joint venture company that will be operated by IFSAR.

Speaker #2: We are well integrated in the country, having been operating there for over five years. From day one, we will have control over the exploration program through our board and technical committees.

Speaker #2: We expect to continue to leverage local exploration vehicles in highly prospective Tier 1 gold provinces to expand our exploration pipeline. And ensure that we have a multiple high-quality organic growth project that will compete for capital with each other and will underpin continued portfolio pipeline and production growth.

Speaker #2: With that, Ian, back to you.

Speaker #1: Thank you, Sonia. With our strong operating momentum, and the support of gold price environment, we're well positioned to build on our year-to-date performance through the remainder of this year and into 2026.

Speaker #1: The high quality of our portfolio, and the resilience of our business, ensures that we are well positioned to sustainably deliver both sector-leading organic growth and sector-leading shareholder returns.

Speaker #1: We look forward to talking to you in January, when we come back with the Q4 results and we're very, very looking forward to seeing how they turn out.

Speaker #1: It's looking promising. And with that, let me hand you back to the operator for

Speaker #1: Q&A. Thank

Speaker #3: you. Ladies and gentlemen, we'll now begin the question and answer session. As a reminder, if you wish to ask a question, please press star one and one on your telephone and wait for your name to be announced.

Speaker #3: We will be prioritizing questions from covering analysts at this time. If each analyst could limit themselves to two questions before jumping back in the queue.

Speaker #3: If you wish to cancel your request, please press star one and one again. Once again, please press star one and one if you wish to ask a question.

Speaker #3: Please stand by while we compile the Q&A queue. We are now going to proceed with our first question. And the questions come from the line of Wayne Lam from TD Securities.

Speaker #3: Please ask your question.

Speaker #4: Oh, thanks. Good morning, everyone. Maybe a $7. Just wondering if you may be able to give us a bit of color on what you're seeing in terms of the stability of the government on the ground there.

Speaker #4: And are you in discussions on any potential renegotiation on the mining code in the country? Wayne, thanks. Look, in terms of stability of the government, having spent the last week in the country, you get a good sense just being in the streets, in the towns, talking to people.

Speaker #4: I'm not seeing anything abnormal here. There are some current discussion going on at government level. Around what they're doing. We are not in any negotiations with regard to change in mining codes in the country.

Speaker #4: Would I suspect that there will come? I think we've seen elsewhere in West Africa, there is a tendency to want to modify bearing in mind that the mining code in this country goes back to 2013.

Speaker #4: So, it's probably fair to say it's likely due for renewal. If it comes, would I be surprised? No. But the dialogue between ourselves and the government, I think, is fairly good.

Speaker #4: And I think if there are going to be any changes, there's certainly going to be well telegraphed. And I would sincerely hope that we all have a high degree of input into what goes into them.

Speaker #4: But I don't see any immediate change in the immediate future. Okay, great. Thanks. And then maybe just wondering on the recent JV signed with IFSAR.

Speaker #4: Can you just talk about the strategy going forward regionally for the company? Just given Endeavor's long-standing history of operation in West Africa, are you still keen on expanding within the country where you operate?

Speaker #4: Or are you now looking to diversify out into other developing regions

Speaker #4: globally? I think the

Speaker #1: answer as I've mentioned previously, Wayne, we still see good potential in West Africa. We're really sort of doubling down, particularly on our brownfields exploration.

Speaker #1: I think you can see what Sonia mentioned about, specifically at places like Sabadell, a highly prospective piece of real estate. We've just got to go and look for it.

Speaker #1: So we are certainly not walking away from West Africa; far from it. But we do recognize that looking forward—and bear in mind, exploration is a long-term game.

Speaker #1: This is not something that we're doing for the next quarter. The reason why we're expanding and taking sort of baby steps outside of West Africa is we're actually looking longer term.

Speaker #1: We're looking for the mines that we will develop in the 2030s. That's sort of time horizon that we're looking at. And our focus is going to be on those areas that we think are highly prospective, relatively underexplored, and where we believe that our unique exploration expertise can be applied and we can be equally as successful over the next decade as we've been if you look back over the past decade in terms of cost-effective discovery advances in

Speaker #4: Okay, great. Thanks for taking my...

Speaker #3: We are now going to proceed with our next question. And the questions come from the line of Richard Hatch from Berenberg. Please go ahead.

Speaker #3: Your line is opened.

Speaker #5: Thanks. Yeah, hi and in team. Yeah, two questions. Firstly, just following on from the previous questions around tax. And royalty regimes in West Africa, it has been a theme amongst some shareholders just questions around that.

Speaker #5: And I guess you've got your stability agreement in Senegal. And Burkina has already moved on that. But what about Côte d'Ivoire? What are you kind of hearing or seeing in Côte d'Ivoire?

Speaker #5: And how should we think about changes to royalty regimes in Côte d'Ivoire, tax and royalty regimes in Côte d'Ivoire? That's the first one. Thanks.

Speaker #6: Hey, Richard, guy. Richard, in Côte d'Ivoire, I think a relatively well-publicized discussion continues between the Chamber of Mines, on which we're obviously represented, and the state.

Speaker #6: The state's primary focus appears to be, among other things, on the royalty rates. It's important to us, obviously, predominantly with regard to ASAFU, because that's the site we would like to start developing.

Speaker #6: But for which we don't have any signed convention. So that's the key aspect for us. In terms of ETI in particular, we do have, as you know, a stabilization clause on which we would rely to avoid any near-term increase in royalty.

Speaker #6: Also, sometimes we're looking for permanent renewal. Lafigue, we would hope to be soon at which point we'd be able to confirm, but there is no doubt there is ongoing and upward pressure from all of the states, including Côte d'Ivoire, particularly in terms of that royalty rate.

Speaker #5: understood. Thanks. I'll ask my second one, but just to be clear. You can go forward with ASAFU construction without having that convention signed, or would you prefer to have it signed before you go forward?

Speaker #5: And then the follow-up, sorry, was how significant is a significant hike in the dividend, right? So if I look at 225 million, I mean, a significant hike could be 30%, but that takes it to 300 million.

Speaker #5: So is 300 million like a fair number, rule of thumb, or could it be more, or how do we think about the significance of significant?

Speaker #5: Thanks.

Speaker #1: Richard, in terms of the numbers that you've spoken of, you may say that we couldn't possibly comment at this stage.

Speaker #5: Thanks.

Speaker #6: Richard, we will, of course, be coming up with some more directional numbers very early next year. It's just a question, so significant is obviously a subjective term and a qualitative one at that.

Speaker #6: Open to interpretation. It's just that we do need to get to the end of our annual planning process. We need to take some views on gold pricing.

Speaker #6: we understand where we think the ASAFU Reassessing cash flows, making sure numbers are going to land. But in any of those scenarios, we see some significant—apologies—capacity for us to improve the current scenario, which we believe is relatively sector-leading anyway, and is only upside from here.

Speaker #6: But it won't be long, and we'll be able to provide you with a lot more quantitative directions.

Speaker #5: Okay, much appreciated. Thanks, team. Cheers. Get well.

Speaker #3: We are now going to take our next question. And the questions come from the line of Uwais Habib from Scotiabank. Please go ahead. Your line is

Speaker #3: open. Thanks, Alfredo.

Speaker #6: Hi, Ian and Mendelva team. Congrats on a good quarter and really glad to hear that production is tracking towards the top end of guidance.

Speaker #6: Ian, a couple of questions from me. I'm just wanted to start off with—sorry, ASAFU. Exploitation permit approval and DFS looks like they're on track to completion in Q1.

Speaker #6: Ian, there was a lot of drilling completed over the last couple of quarters, and Sonia did mention that mineralization extends over a three-kilometer strike length.

Speaker #6: And it remains open. Obviously, that looks like there's a lot more further upside over here. Is this drilling going to be included in the DFS, and is there any change or scope change in the DFS that we should

Speaker #6: expect? Uwais,

Speaker #1: great question. Thank you. Look, I mean, we've actually addressed this issue previously. At some point, you actually have to sort of close off the reserve because you've got to do it against your published reserve and resource statement.

Speaker #1: We've taken the—we've taken the view that the numbers that we used in the PFS, which was a 4.1 million ounce reserve, would be the number that we would use for the study.

Speaker #1: But we're cognizant of the fact that there is potential upside from there. Having said that, it's our belief that the 4.1 million ounces is more than enough against which we can do a realistic study—the final feasibility study—but we will make sure that whatever design we come up with and that we finally go with has inbuilt flexibility and there will be the assumption that over the life of this project, that there will be scope to expand the throughput over and beyond the 5 million ton a year which is the design profile that we're using for the initial study.

Speaker #1: So we've decided to fix our view at that level, but the design will be flexible. We will not sort of bottle ourselves in. We'll leave lots of room and shape and capacity in the design that, if we wish to increase capacity, we could do so, and it's not going to make life difficult for ourselves.

Speaker #1: That's the approach that we've decided to take.

Speaker #6: Okay, thanks for that, Ian. And then just moving on to exploration, the new five-year exploration strategy is expected in Q4. Are we going to get a resource target like we did previously?

Speaker #6: And maybe a part two to that is where's kind of the low-hanging fruit that you would be targeting in the near term?

Speaker #7: Yeah, thanks a lot for the question. So as I mentioned, the strategy will be presented on the next quarter. However, just looking at the next five years, we'll be playing—we will definitely double down in our existing operation.

Speaker #7: We have a pipeline of brownfield and greenfield that have been identified that will move forward, especially the brownfield and the short-term. And greenfield will be progressed in the next two, three years, to really keep building on that pipeline.

Speaker #7: In parallel, we are really looking to expand the portfolio; that's why we're looking at this low-cost entry strategy of joint venture with partnership and junior in different countries.

Speaker #7: But definitely in the short term, we have identified a strong pipeline for brownfield in our existing areas. And hoping applying new technologies, new data sets to actually continue expanding on that.

Speaker #1: But as we did previously, Uwais, it would be the intention that we will be setting ourselves internal targets. For Just in terms of , you know , brownfields , like you talked about brownfields targets .

Speaker #1: Is is the donut concept still in in on the plate And right now ? that's going to be a focus going on to 2026 .

Speaker #2: Look , it's a as plan . Absolutely . I mean , you know there's you've seen the the plans . You know we're busy doing the engineering studies .

Speaker #2: We're looking at the implications of what is meant by this. I think, as we said previously, one of the real issues that we have is that it is a very, very tight site.

Speaker #2: You know , the donut requires , you know , a fairly degree high of ground movement and the question is , you know , where best do we do ?

Speaker #2: We put , you know , all the particularly the waste material and that's what's requiring some very careful thought requiring us to do some fairly rapid condemnation drilling to make sure that , you know , in terms of waste pile positioning , we're not putting it on any future .

Speaker #2: Oil reserves . And sterilizing stuff that we could go go into in , in the future . But it's absolutely a very important part of , you know , organic growth opportunity potential within the group .

Speaker #1: Thanks for that , Ian , and thanks for taking my questions . And , Sonya , I'm looking forward to meeting you soon .

Speaker #3: Thank you .

Speaker #4: We are now going to proceed with our next question . And the questions come from the line of Fahad Tariq from Jefferies question .

Speaker #4: . Please ask your Your line is open .

Speaker #5: Hi . Thanks for taking my questions . Ian . I just wanted to come back to your first answer on Senegal . There was a Bloomberg article just this morning talking about the government seeking to perhaps change its mining code by the end of the year , given the debt crisis in the country .

Speaker #5: Your answer said , you know , you don't see an immediate change in the immediate future . Can you maybe just comment on that , like , is it based on discussions that you've had with the government or the team has had with the government ?

Speaker #5: Thanks .

Speaker #2: Look , Farhad , we've not had any discussions with government around the change . We also saw that comment . I think there's a huge difference between an aspiration and an ability to deliver .

Speaker #2: And I think being realistic , there's no ways that government may want to have a change in the code . But I do believe that , you know , it's not really going to to to happen .

Speaker #2: I mean , our at , you know , our current mining code extends up to 2040 . So any changes to the existing 230 mining code , you know , are unlikely to affect us at , you know , in the in the short term .

Speaker #2: So , you know , it's there's always lots of commentary in fairness , as think I guy mentioned earlier , you know , all all jurisdictions are looking at ways of increasing their take , you the , know , with the higher gold price received .

Speaker #2: And let's be frank , that's not unique to countries . You know , where we're mining every country around the world is looking at ways of , of grabbing extra tax dollars .

Speaker #2: So if you are asking me , is there going to be a change by the end of the year ? I would say , you know , that's not going to happen .

Speaker #2: I if you're asking me what is the trajectory , I think it's fair to say that the , the trajectory , like in all countries , is likely to be higher , but over the , longer term time timeline of which I'm afraid at this stage I can't actually define .

Speaker #5: That's helpful . Thanks . And then just switching gears to exploration philosophically , is there a mines that prioritization of are , let's say , around the ten year mine life ?

Speaker #5: And you want to maybe extend those mine lives , for example , and or is it really just based on where you're seeing the most geologic potential ?

Speaker #5: And that's where the , the exploration focus and the rigs will be .

Speaker #2: I think you know it would always be great if you had a short mine life and there was lots of potential, and you could focus there.

Speaker #2: You know , that would be the logical thing to do . But you're exploration focus is absolutely going to be where you believe is the maximum potential .

Speaker #2: You know , we're very fortunate that in our portfolio , you know , we have some great potential . And historically , you know , there's been perhaps insufficient emphasis on the underground potential .

Speaker #2: And if you look at at Adalah , ity Hyundai , you know , all three of those mines have been fabulous mines within the portfolio but got really good underground potential .

Speaker #2: And we we recognized this that , you know , this is a great internal upside potential for the group . You know , we are increasing our focus on underground exploration .

Speaker #2: But importantly also bringing on board people into the group who've got extensive underground mining planning , execution capability . So we're preparing ourselves that a future within endeavor is not going to just be open cut .

Speaker #2: It will be open cut as well as appropriate . And commercially viable underground operations as well .

Speaker #5: Thank you Great . .

Speaker #4: We are now going to proceed next question . And question comes the from the line Marina Calero from RBC Capital Markets . Please go ahead .

Speaker #4: Your line is open .

Speaker #3: Hi . Good afternoon . Thanks for the call . I have two questions on on my side . The first one is a follow up from previous questions on the JV agreement announced today .

Speaker #3: You're looking to diversify into new regions . Can you comment where else you're seeing potential at the moment ? And as an extension of that , how much capital are you looking to invest in these type of agreements going forward ?

Speaker #3: Thank you .

Speaker #2: Yeah . Marina , again , I think previously we've we've flagged that we certainly . Have an interest , you know , in the , the Tethyan belt .

Speaker #2: So clearly you know that's why Kazakhstan has been flagged as being high potential . Let me reiterate what I said earlier , is areas of high prospectivity the potential for tier one deposits as being , as well relatively underexplored , where we can apply our acquired previously expertise and knowledge and also perhaps our familiarity specific why we've also said with geology .

Speaker #2: So clearly you know that's why Kazakhstan has been flagged as being high potential . Let me reiterate what I said earlier , is areas of high prospectivity the potential for tier one deposits as being , as well relatively underexplored , where we can apply our acquired previously expertise and knowledge and also perhaps our familiarity specific why we've also said Which is that , you know , parts of sort of northern South America , know , you highly are prospective .

Speaker #2: It's the same geology as we're you know , we're in , exploiting in West Africa . So those are the areas of focus .

Speaker #2: So it just it's not a shotgun is approach to to expanding our exploration portfolio . It is a very deliberately focused program where we believe our to approach exploration , you know , our ability to have a higher probability of success believe that we can actually , .

Speaker #2: you know , repeat the success We had over the past that we've And going decade . the same , generate more greenfields ounces , and prepare ourselves for the the next mines post office .

Speaker #3: Thank you . That's very clear . And have one more question for Sonia on the Non-refractory targets that you are drilling at Massawa .

Speaker #3: Can you give us a bit more color on that? And when we could see those coming into the mine plan? For the Zahra, we are still completing.

Speaker #6: The drilling campaign that has to to aspects one on a already agreed part of the resource , as it was infill drilling to really get to next year , to infer the resource .

Speaker #6: But in parallel , we are also doing the exploratory drilling to understand the full really extension of resource . So what we see today as an extension of potential a five kilometres , where the over mineralisation continues , why we are working with the team that's fully understand the resource size , which will impact on where it will be scheduled on the mine plan on the other opportunity , Makana .

Speaker #6: This is a brownfield opportunity . Nearby are still facility are planned so we will accelerate in 2026 . The drilling campaign to get into indicated resources .

Speaker #6: goal is to actually So the accelerate it to the mine plan . As we get into 2027 and display the lower grade resources .

Speaker #3: Thank you .

Speaker #4: We are now going to proceed with our next question . And the questions comes from the line Anita from Soni World Markets . Please go line is open .

Speaker #7: Hi . Good morning . Ian I . to Team , ask a couple of CapEx questions on the

Speaker #7: related Fiji . I think the just wanted CapEx has been from sustaining to ahead .

Speaker #7: . And Non-sustaining I think , can you just Your give me some color on thought you said that ? I was it related to a focus on the different kinds stripping that of you're doing ?

Speaker #7: And then should we then assume that that sustaining capital will catch up next year ? Is that is that a good assumption or no ?

Speaker #8: Anita , Hi guy , I'll try this . And if Jerry wants to add anything , yes , you're absolutely right . There is a there is a slight change in the CapEx So split .

Speaker #8: there's another 10 million in our Non-sustaining that associated is with a revision effectively to our stripping plan . So we're increasing some stripping at the main pit .

Speaker #8: effectively That's allowing us access in the short to to term fresh or and ounces . We push will stripping into non-sustaining from sustaining .

Speaker #8: If the the pushback or itself strip both ahead of is life of mine strip ratio as well as accessing all that's going to be mined over multiple years .

Speaker #8: So in this particular case , those those criteria have been And met . consequently it's moved from sustaining to non-sustaining . I think the over term , longer we don't have any shift in our fundamental expectation for total CapEx at the site .

Speaker #8: a This is question of term short changes to plan mine .

Speaker #7: Okay . So the strip ratio is higher than life of so it mine . And moved from one from the from the sustaining to .

Speaker #8: In this particular strip .

Speaker #7: Okay . And then secondly on masala , Sabadilla the the the processing costs dropped . This quarter . And I'm just wondering , is that a function of , of something that's I guess sustainable or is that , is that really just a more of the higher contribution of , of the CIL which I presume or slightly cheaper than the Biox ?

Speaker #8: Anita . Maybe I can chat to you offline . Just understand exactly the at quantum's you're looking . I think it is say though , from a fair to broader trend perspective .

Speaker #8: Yes , our costs processing have benefited from some improvement in recoveries , which which we touched on we earlier in the call impact that you're likely to .

Speaker #8: see , having started to come The other through in our 25 numbers and arguably going to be a bigger contributor into 2026 , is the .

Speaker #8: Solar investment . Our solar which investment , we started coming online , is an year investment which we've been very proud of . Not only for its ESG credentials , but the fact that it does have fundamental a improvement to our operating costs .

Speaker #8: So as the solar has ramped up , it's starting to contribute to a greater proportion of our overall power consumption . And that , I think , again , term as a long trend should be underpinning some of the improvements you're seeing in processing costs at Silver Dollar

Speaker #7: it for my

Speaker #7: Thank you. That's.

Speaker #4: Thank you . reminder to ask a question , you need to press star one one on your telephone and your name to be announced .

Speaker #4: Once again, it's star one one on your telephone and wait for your name to be announced. We are now going to proceed with our next question, and the questions come from Sidibé Mohamed, Bank Capital National Markets.

Speaker #4: Please go line is ahead . open Your .

Speaker #9: Thank you . Good morning and thanks for taking my question , I think you mentioned that the goal is not to stockpile cash as you're advancing through the Could you next year .

Speaker #9: us understand what's the amount of minimum cash you would like to hold while advancing the bill ? That Asafo , in order to better understand maybe your capital return profile or your capital priorities .

Speaker #9: Thank allocation you .

Speaker #8: No problem . I'm afraid I'm not going to be able to give you , even through the back door , sufficient quantification to to kind of reverse engineer the the shareholder returns .

Speaker #8: But what I , what I can just point to , which I think we've discussed before is in terms of minimum cash requirements , we fundamentally look to hold sufficient liquidity at both mine site as well as offshore .

Speaker #8: And when we look at those numbers , we tend to at $150 million of liquidity offshore . And we also like to keep around 15 to $20 million of liquidity at mine site .

Speaker #8: I do keep trying to underline the liquidity point here . So if we hold it in cash , that's But it doesn't necessarily have to be in cash .

Speaker #8: It just needs to be liquidity availability . So I would reiterate the point made during the presentation itself . We have no stated short or medium term ambition to be holding cash piles .

Speaker #8: However , those cash piles , as you would expect , form part of the capital allocation and ongoing capital allocation and we will look to , of course , provide the right levels of liquidity and balance sheet strength .

Speaker #8: But equally, we will continue to focus on shareholder returns and CapEx, as well as the cash CapEx requirements of the business for organic growth.

Speaker #8: So, there isn't a substantial amount of cash requirements or liquidity at either an offshore or a site level.

Speaker #9: All right . Great . Thanks for that . And then maybe if I could follow up on the working capital side of things , you noted that you expect , you know , a big part of that to to be coming out and flowing out in 2026 , should we expect this to be mostly coming out in 26 , or would some be seen in 2027 as well ?

Speaker #9: Just wanted to think about the amount and levels into next year . Thank you .

Speaker #8: Sure . Sorry . Just to make sure I understood you're talking about the the unwind profile .

Speaker #9: The Exactly . unwinding of the inventory and accounts receivable the .

Speaker #8: Okay , perfect . So I think from a stockpile perspective , which which is arguably the , most material number . Yes . We see going particularly into 2026 , partly as a result of the mine plans , the ability to start unwinding and and in particular , as I mentioned , it's it's likely to be happening at Lafage as well as Sabadilla Sabadilla as we start blending slightly looking and differently change to our process , plant , feed , we should see North Zone material starting become to consumed in in H2 of 26 Lafage same it's the we've point got .

Speaker #8: We've got a plant that is currently managing to produce well above nameplate capacity . And as a result , we've we've stockpiled in order to be able to ensure that that plant is filled through 2026 .

Speaker #8: So whilst I think the trajectory is better for 2026 , I think it would be to presumptuous assume that we would be able to consume all of our stockpiles .

Speaker #8: Clearly , there are going to be stockpiles consumed over the life of mine , but there is an improving trend between 25 and 26 , as I've described , I think , slightly more difficult to to answer is on the VAT where we have higher degrees of confidence is in and around Cote d'Ivoire , and Senegal .

Speaker #8: Côte d'Ivoire is associated with Lafage, which has just come online. As it turns out, simultaneously, the state of Côte d'Ivoire has implemented a new administrative process and an online automated process.

Speaker #8: In the same Those year . two things did end up slowing down our ability to submit and and and claim VAT reimbursements . The quarterly nature will not change .

Speaker #8: So I expect us to be at a stabilized level, which is slightly lower than where we are now. And then that should.

Speaker #8: And that would be in And then that 2026 . flatten in terms of overall movements , unless the amount changes in nominal Senegal , we remain on track .

Speaker #8: It's a monthly process . So that's just a question of lead time . And the nominal amount , if it goes up associated with cost it might increase slightly .

Speaker #8: But that I expect to remain flat . relatively The big unanswered one and very difficult to answer one , is Burkina Faso . We don't see Burkina Faso as a counterparty risk , we which is why don't account for it as such .

Speaker #8: So our ECL associated with our VAT receivables is focused entirely on timing . The Burkina Faso always state has remained true to its word in in when it owes us money , it pays us .

Speaker #8: The question is around timing because they're under their own cash constraints. So we don't see the counterparty, but we risk remaining cautious in terms of being able to commit to timing.

Speaker #8: And consequently we're looking at alternatives where we might be able to look into some kind factoring that of allows us access to the cash .

Speaker #8: that Failing , arguably , this is going to be a slightly longer term issue , but not not one which we believe is continue insurmountable .

Speaker #8: We'll be on it between 25 and 26. We should see some improvement, but thereafter we'll have to wait and see whether the success of the factoring program can be repeated.

Speaker #9: Thanks a lot for you guys .

Speaker #4: We are not going to proceed with our next question and the questions come from the Felicity line of Robson from Bank of America .

Speaker #4: Please go ahead . Your line is open .

Speaker #10: Thank you for taking my question at mana . You're expecting costs above the end of top the guide , in part due to higher power costs and issues around grid , grid stability .

Speaker #10: How can we think about the cost profile forward there ? Please going ?

Speaker #3: Thank you . Felicity .

Speaker #11: I think I will previously mentioned last quarter . We know that have we don't issues around cost , and we do still have a lot of work to do .

Speaker #11: We mentioned that the 2 or 3 key elements are the reliance here on the power. And we are currently improving some of the initiatives.

Speaker #11: One of them being the the transformer . That will be setting up . So normally by the beginning of next year , we should be seeing an improvement , at least on the current power cost , because what that will allow us to do with that transformer to be is to then the use grid on the mining .

Speaker #11: underground So that's one thing I think on the quarter three , what we seen as well is that one off cost due to the from transition two contractors to one contractor now , which were very comfortable with .

Speaker #11: So with that , that means that there is a lot of productivity initiatives that we'll be putting in place . But one thing is for sure , mana , I think what we've for seen is that in terms of production , which are stable , mana contributing to the group production as overall is still generating cash .

Speaker #11: So I think for now we just need to continue putting together some initiatives in order to reduce the mana cost of .

Speaker #10: Okay . Thank you .

Speaker #11: Thank you for this .

Speaker #4: Thank you . That will conclude today's Q&A session and today's conference call . Thank you for your participation . You may now disconnect .