Full Year 2025 Caledonia Mining Corp PLC Earnings Call

March 23, 2026

Speaker #2: Welcome to the Caledonia Mining Quarterly and Full Year Results 2025 presentation for analysts and investors. I would now like to hand you over to Mark Learmonth, who is the CEO. Mark, over to you.

Operator: Welcome to the Caledonia Mining Quarterly and Full Year Results 2025 Presentation for Analysts and Investors. I would now like to hand you over to Mark Learmonth, who is the CEO. Mark, over to you.

Speaker #3: Good afternoon, and welcome to this management conference call. If we could move to the first slide of the presentation, please. Just go to the disclaimer.

Mark Learmonth: Good afternoon and welcome to this management conference call. If we could move to the first slide of the presentation, please. Just go to the disclaimer. That's the standard disclaimer. If we could move on to the next slide, please. Presenting team. There's me, Mark Learmonth, Caledonia's Chief Executive. We're also joined by Ross Jerrard, who will run us through the financial performance for the year. Victor Gapare, who will talk to us about what's happening at Bilboes. And Craig Harvey will give us an update on the various exploration initiatives. If we could move on to the next slide, please. Just in terms of the summary of the results, it was a very strong financial performance, underpinned by a higher gold price and some consistent operating delivery.

Speaker #3: So, that's the standard disclaimer. If we could move on to the next slide, please. Presenting Teams with me, Mark Learmonth, Caledonia's Chief Executive. We're also joined by Ross Jerrard, who will run us through the financial performance for the year.

Mark Learmonth: oss Jerrard, who will run us through the financial performance for the year. Victor Gapare, who will talk to us about what's happening at Bilboes. And Craig Harvey will give us an update on the various exploration initiatives. If we could move on to the next slide, please. Just in terms of the summary of the results, it was a very strong financial performance, underpinned by a higher gold price and some consistent operating delivery.

Speaker #3: Victor Gapare, who will talk to us about what's happening at Bilbo's. And Craig Harvey will give us an update on the various exploration initiatives.

Speaker #3: If we could move on to the next slide, please. So just in terms of the summary of the results, it was a very strong financial performance.

Speaker #3: Underpinned by a higher gold price and some consistent operating delivery. Revenue up by 46% to $267 million. Gross profit up by 78% to $137 million.

Mark Learmonth: Revenue up by 46% to $267 million. Gross profit up by 78% to $137 million. EBITDA up by 100%, from just less than $60 million to just over $125 million. Profit after tax up by 200% from $23 million to $67 million. There's some quite big numbers there. Ross will unpack those numbers in more detail in a moment. Should we move on to the next slide, please? Before we go much further, can we just briefly discuss Caledonia's value creation proposition? From one angle, what we see here is looking at this from the perspective of our distributions in country to government by way of taxes and royalties, and also to our local shareholders.

Speaker #3: EBITDA up by 100% from just less than 60 million dollars to just over 125 million dollars. And the profit after tax up by 200% from 23 million dollars to 67 million dollars.

Speaker #3: So there are some quite big, quite big numbers there. Ross will unpack those numbers in more detail in a moment. Should we move on to the next slide, please?

Mark Learmonth: Before we go much further, can we just briefly discuss Caledonia's value creation proposition? From one angle, what we see here is looking at this from the perspective of our distributions in country to government by way of taxes and royalties, and also to our local shareholders.

Speaker #3: Before we go much further, can we just briefly discuss Caledonia's value creation propositions? So, from one angle, what we see here is looking at this from the perspective of our distributions in-country to government by way of taxes and royalties, and also to our local shareholders.

Speaker #3: Over the course of the last nine years, we've distributed just over a quarter of a billion dollars. So we're making a very, very substantial contribution, and you can see quite how that increased in 2025 as a result of higher taxes due to higher profitability, higher royalties due to the higher gold price, but also an increase in local dividend payments to our local minority shareholders as a result of the strong financial performance and the unwinding of certain local ownership initiatives.

Mark Learmonth: Over the course of the last 9 years, we've distributed just over a quarter of a billion dollars. We're making a very, very substantial contribution. You can see quite how that increased in 2025 as a result of higher taxes due to higher profitability, higher royalties due to the higher gold price, but also an increase in local dividend payments to our local minority shareholders as a result of the strong financial performance and the unwinding of certain local ownership initiatives. That's very pleasing to see. Moving on to the next slide. As well as paying a quarter of a billion dollars out to local stakeholders, we've also delivered a very significant return to our shareholders.

Speaker #3: So that's very pleasing to see. But moving on to the next slide, as well as paying a quarter of a billion dollars out to local stakeholders, we've also delivered a very significant return to our shareholders.

Mark Learmonth: That's very pleasing to see. Moving on to the next slide. As well as paying a quarter of a billion dollars out to local stakeholders, we've also delivered a very significant return to our shareholders. The top line shows Caledonia's share price over 10 years with dividends, and we've given a return of just over 1,000%. Over the same period, GDXJ has increased by 464% and gold up by 300%.

Speaker #3: So the top line shows Caledonia's share price over 10 years with dividends. And we've given a return of just over 1,000%.

Mark Learmonth: The top line shows Caledonia's share price over 10 years with dividends, and we've given a return of just over 1,000%. Over the same period, GDXJ has increased by 464% and gold up by 300%. As well as making significant contributions locally, we're also delivering a very healthy return for our shareholders. Can we move on to the next slide? Right. Let's just quickly focus on the operating results. Clearly, we had a very unfortunate fatality in September as a result of a secondary blasting incident.

Speaker #3: Over the same period, GDXJ has increased by 464%, and gold is up by 300%. So as well as making significant contributions locally, we're also delivering a very, very healthy return for our shareholders.

Mark Learmonth: As well as making significant contributions locally, we're also delivering a very healthy return for our shareholders. Can we move on to the next slide? Right. Let's just quickly focus on the operating results. Clearly, we had a very unfortunate fatality in September as a result of a secondary blasting incident.

Speaker #3: Should we move on to the next slide? Right. Let's just quickly focus on the operating results. Clearly, fatality in September as a result of a secondary blasting incident.

Speaker #3: As a result of that, we initiated a comprehensive review of our safety practices and our safety procedures, our operating controls, and our training programs across the entire business, with the objective of improving our risk management and making sure that we operate as safely as it's possible to do in a very hostile underground environment.

Mark Learmonth: As a result of that, we initiated a comprehensive review of our safety practices and our safety procedures, our operating controls, and our training programs across the entire business, with the objective of improving our risk management and making sure that we operate as safely as it's possible to do in a very hostile underground environment. That includes instilling operational discipline, a proactive forward-looking approach to identifying hazards and avoiding such hazards, and embedding a zero-harm culture across the organization. Should we move on to the next slide? What we see here is the usual graph. The top graph shows our tonnes milled and grade. The bottom graph, the bars show the ounces, and the line shows the recovery.

Speaker #3: That includes instilling operational discipline, a proactive, forward-looking approach to identifying hazards and and avoiding such hazards, and embedding a a zero harm culture across the organization.

Mark Learmonth: That includes instilling operational discipline, a proactive forward-looking approach to identifying hazards and avoiding such hazards, and embedding a zero-harm culture across the organization. Should we move on to the next slide? What we see here is the usual graph. The top graph shows our tonnes milled and grade. The bottom graph, the bars show the ounces, and the line shows the recovery.

Speaker #3: Should we move on to the next slide? But what we see here is the usual, usual graph. The top graph shows our tons, building grade. The bottom graph, the bars show the answers.

Speaker #3: And the the line the line shows the recovery. What's notable really in the top graph is that the the tons mill that have been stable with pretty much operating the the plans, the metallurgical planners, the crushing and crushing and milling and the CIL plant pretty much operating that at maximum capacity of about 820 odd thousand tons a year.

Mark Learmonth: What's notable really on the top graph is that the tonnes milled have been stable, with pretty much operating the plants, the metallurgical plants, the crushing and milling and the CIL plants, pretty much operating that at maximum capacity of about 820 thousand tonnes a year. That's been very stable, largely because we've been able to make use of the stockpile to draw down from the stockpile on those rare occasions when the mine hasn't been delivering the tons. Also what's clear from the lower line is the extent to which the grade is lower in Q4 and Q3 than it has been historically. Part of that is due to the fact that temporarily we're mining lower grade areas as we're developing into high grade areas.

Speaker #3: And that's been very stable, largely because we've been able to make use of the stockpile—to draw down from the stockpile on those rare occasions when the mine hasn't been delivering the tons.

Mark Learmonth: Also what's clear from the lower line is the extent to which the grade is lower in Q4 and Q3 than it has been historically. Part of that is due to the fact that temporarily we're mining lower grade areas as we're developing into high grade areas. That will, we expect, reverse into Q2 2026. In January, February, we're still mining relatively low grade areas. That has improved in March. Also to some extent, as we've been drawing down from the stockpile, the stockpile itself is relatively low grade.

Speaker #3: But also, what's clear from the lower line is the extent to which the grade is lower in quarter four and quarter three than it has been historically.

Speaker #3: Part of that is due to the fact that temporarily we're mining lower grade areas as we're developing into high grade areas. That will we expect reverse into the second quarter of 2026.

Mark Learmonth: That will, we expect, reverse into Q2 2026. In January, February, we're still mining relatively low grade areas. That has improved in March. Also to some extent, as we've been drawing down from the stockpile, the stockpile itself is relatively low grade. The bottom chart clearly shows the ounces, but it shows the drop in recovery, and that is largely due to the lower feed grade. The tail grade that we deposit onto the tailings facility is pretty much 0.2 grams a ton. We're not gonna get much better than that. Inevitably, that means that the difference is that the recovery goes down. Can we move on to the next slide?

Speaker #3: In the first January, February, we're still mining relatively low grade areas. That has improved in March. And also to some extent, as we've been drawing down from the from the stockpile, the the stockpile itself is relatively low grade.

Mark Learmonth: The bottom chart clearly shows the ounces, but it shows the drop in recovery, and that is largely due to the lower feed grade. The tail grade that we deposit onto the tailings facility is pretty much 0.2 grams a ton. We're not gonna get much better than that. Inevitably, that means that the difference is that the recovery goes down. Can we move on to the next slide?

Speaker #3: The bottom the bottom chart clearly clearly shows the ounces but it shows the the the drop in recovery and that is largely due to the lower feed grade.

Speaker #3: The tail grade that we deposit onto the tailings facility, pretty much, it's 0.2 grams a tonne. We're not going to get much better than that.

Speaker #3: So inevitably, that means that the difference being that the recovery goes down. Can we move on to the next slide? Craig will talk in a lot more detail about exploration towards the end of the presentation.

Mark Learmonth: Craig will talk in a lot more detail about exploration towards the end of the presentation. Our exploration activities at Blanket are really targeted with replacing what we're depleting, so we're effectively standing still. Nevertheless, we've actually done rather better than that. Over the course of the quarter, Q4, you can see that we added quite substantially more tons than we depleted. As Craig will explain later on, that will give, in due course, result in a revised reserve and resource statement for Blanket. Should we move on? Right. I'll now ask Ross if he could run us through the financial results. Ross, could you do that?

Speaker #3: Our exploration activities at Blanket are really targeted with replacing what we're depleting, so we're effectively standing still. Nevertheless, we've actually done rather, rather better than that.

Speaker #3: So, over the course of the year, and over the course of the quarter—it was quarter four—you can see that we added quite substantially more tons than we depleted.

Mark Learmonth: As Craig will explain later on, that will give, in due course, result in a revised reserve and resource statement for Blanket. Should we move on? Right. I'll now ask Ross if he could run us through the financial results. Ross, could you do that?

Speaker #3: And as James, as Craig will explain later on, that will give, in due course, result in a revised reserve and resource statement for Blanket.

Speaker #3: Should we move on? Right. Our last—Ross, if he could run us through the financial results. Ross, could you do that? Thank you, Mark.

Ross Jerrard: Thank you, Mark, and good afternoon, everyone. Before we dive into the financial results, I just wanted to draw your attention to the format of the reporting. As previously advised, Caledonia is now classified as a foreign private issuer under Canadian rules. The standard filing requirements in Canada that you've historically seen has changed. We will be filing our full financial statements under the SEC rules, so included in our 20-F, which is scheduled to be filed in April. You'll see the full financial statements and controls attestation. That's all gonna be done in April. I'm delighted to talk you through the financial results today. You can see on the summary slide in front of you, we've had a fantastic year.

Speaker #3: And good afternoon, everyone. Before we dive into the financial results, I just wanted to draw your attention to the format of the reporting. And as previously advised, Caledonia is now classified as a foreign private issuer under Canadian rules.

Speaker #3: So, the standard filing requirements in Canada that you've historically seen have changed. We will be filing our full financial statements under the SEC rules.

Ross Jerrard: We will be filing our full financial statements under the SEC rules, so included in our 20-F, which is scheduled to be filed in April. You'll see the full financial statements and controls attestation. That's all gonna be done in April. I'm delighted to talk you through the financial results today. You can see on the summary slide in front of you, we've had a fantastic year.

Speaker #3: So included in our 20F, which is scheduled to be filed in April, you'll see the full financial statements and controls attestation and that's all going to be done in April.

Speaker #3: So, I'm delighted to talk you through the financial results today, and you can see on the summary slide in front of you that we've had a fantastic year.

Ross Jerrard: The performance was really driven by the benefit of a higher gold price environment but also delivering the ounces. Blanket Mine produced 76,000 ounces of gold in 2025 and sold 77,000 ounces. The Bilboes oxide operation produced and sold 1,683 ounces of gold. So together they totaled at 79,000 ounces on the top right-hand of the chart. Importantly to highlight, our on-mine costs were up some 19%. The unit costs were marginally above those cost guidance ranges that we had guided the market.

Speaker #3: The performance was really driven by the benefit of the higher gold price environment but also delivering the answers Blanket Mine produced 76,000 ounces of gold in 2025.

Speaker #3: And sold 77,000. Ounces. The billboards oxide operation produced and sold 1,683 ounces of gold. So together they total that 79,000 ounces on the top right end of the of of the chart.

Speaker #3: Importantly, to highlight, our online costs were up—some 19%. And the unit costs were marginally above those cost guidance ranges that we had guided the market.

Speaker #3: This was really a reflection of the restriction of access to some of the higher grade areas, but also some inflationary pressures and our continued investment in development to ensure long-term operational reliability and safety.

Ross Jerrard: This was really a reflection of the restriction of access to some of the higher grade areas, but also some inflationary pressures and our continued investment in development to ensure long-term operational reliability and safety, but also that grade profile. With grade coming through slightly lower than we had originally anticipated, that did have a flow-on impact on our unit costs, just slightly above what we had guided. The overall result though, it was a very pleasing financial result with EBITDA up 109% to $125.3 million, which was a significant improvement.

Speaker #3: But also that that grade profile. So with grade coming through slightly lower than we had originally anticipated, that did have a a flow-on impact on our unit costs just slightly above our what we had guided.

Speaker #3: The overall result, though, was a very pleasing financial result, with EBITDA up 109% to $125.3 million, which was a significant improvement. And after our capital expenditure, which was largely on track to guidance when you take into account some commitments that will roll over year-end, we delivered on our capex profile.

Ross Jerrard: After our capital expenditure, which was largely on track to guidance, when you take into account some commitments that will roll over year-end, we delivered on our CapEx profile. All resulting in healthy free cash flow of $62 million, which is up some 483% on the prior year. After our distributions resulted in an earnings per share, which was at $2.83, which again was up over 200% for the year. A very pleasing set of financial results. Just diving into a little bit more on production costs. If we can turn to the next slide, please.

Speaker #3: And all resulting in healthy free cash flow of $62 million, which is up some 483% on the prior year. And after our distributions, resulted in an earnings per share which was at $2.83, which again was up over 200% for the year.

Speaker #3: So very pleasing set of financial results. Just diving into a little bit more on production costs. So if we can turn to the next slide, please.

Speaker #3: You can see on the bottom right-hand pie chart the makeup of our production cost categories, which is largely driven by labour, consumables, and power, indicated with the blue, orange, and green slices.

Ross Jerrard: You can see on the bottom right-hand pie chart the makeup of our production cost categories, which is largely driven by labor, consumables, and power, indicated with the blue, orange, and green slices, and then a little bit 10% across admin. You'll see in the figures our overall production costs went up 25% across the group. 19% was an increase in Blanket. Really those were driven by those three buckets of labor, consumables, and power. Our labor costs were up this year again due to higher overtime payments that were made during the year and production bonuses together with some wage inflation.

Speaker #3: And and then a little bit 10% across admin. You'll see in the in the figures our our overall production costs went up 25% across the group.

Speaker #3: The 19% was an increase in Blanket. And really, those were driven by those three buckets of labour, consumables, and power. Our labour costs were up.

Ross Jerrard: Really those were driven by those three buckets of labor, consumables, and power. Our labor costs were up this year again due to higher overtime payments that were made during the year and production bonuses together with some wage inflation.

Speaker #3: This year again during due to higher

Speaker #1: Over time , payments that were made during the year in production bonuses , together with some wage inflation . But really , the delivery of the , the , the , the answers needed to was , was a result of more volume being moved and , and hoisted to compensate for that lower grade .

Ross Jerrard: Really the delivery of the ounces was a result of more volume being moved and hoisted to compensate for that lower grade. As a result, we had to pay that overtime and the various bonuses that came through the system. Our consumables were up some 14% for the year. This was driven by some of the inflationary impacts on consumables, reagents, and the like. There is a ZIG premium in terms of local procurement. There's been a big push this year in terms of deploying our local ZIG component back into the market. With that, there is a slight difference with the ZIG versus US dollar differential in terms of the local market.

Speaker #1: And as a result , we , we had to pay that , that over , over time . And the various bonuses that came through the system , our consumables were up some 14% for the year .

Speaker #1: This was driven by some of the inflationary impacts on consumables and reagents and the like . But there is a zig premium in terms of local procurement .

Ross Jerrard: There is a ZIG premium in terms of local procurement. There's been a big push this year in terms of deploying our local ZIG component back into the market. With that, there is a slight difference with the ZIG versus US dollar differential in terms of the local market.

Speaker #1: So there's been a big push this year in terms of deploying our local Zig component back into the market. With that, there is a slight difference with the zinc versus US dollar differential in terms of the local market.

Speaker #1: And I would highlight that it's been a very pleasing year in terms of foreign currency. The differential between the ZIG and the US is very close.

Ross Jerrard: I would highlight that it's been a very pleasing year in terms of foreign currency. The differential between the ZIG and the US is very close now. We're not seeing the high differentials that we've seen in the past. But it has been that as we've taken a strategic decision to deploy into the local procurement market using ZIG, we have incurred an additional premium in terms of that ZIG to US dollar differential. We'll talk a little bit more about the overall Forex loss when we talk through the cash flows. But that has been a driver in terms of our consumables. Our power costs, they have been grid and genset power overruns, which has been really driven by supporting that additional output.

Speaker #1: Now, we're not seeing the high differentials that we've seen in the past, but it has meant that as we've taken a strategic decision to deploy into the local procurement market using ZIG, we have incurred an additional premium in terms of that ZIG to US dollar differential.

Speaker #1: And we'll talk a little bit more about the overall forex loss when we talk through the cash flows. But that has been a driver in terms of our consumables and our power costs.

Ross Jerrard: We'll talk a little bit more about the overall Forex loss when we talk through the cash flows. But that has been a driver in terms of our consumables. Our power costs, they have been grid and genset power overruns, which has been really driven by supporting that additional output.

Speaker #1: There have been grid and genset power overruns , which has been really driven by supporting that additional output . We obviously mining in deeper areas within the mine , driving higher power usage and requirements .

Ross Jerrard: We're obviously mining in deeper areas within the mine, driving higher power usage and requirements, and obviously incurring more power. We do have initiatives in place that we will address these three buckets as part of our ongoing costs initiatives to ensure that we can at least well reduce or at least maintain our cost profiles in those significant buckets. Moving on to the next slide, please. You'll see the results as we work our way through the profit and loss. Top line revenue up at $267 million, driven by those ounces and the higher gold price that I'd spoken to. Our royalty this year was up at $13.5 billion.

Speaker #1: And obviously incurring more, more power. And we do have initiatives in place that we will address these three buckets as part of our ongoing cost initiatives to ensure that we can at least, well, reduce or at least maintain our cost profiles in those significant buckets.

Ross Jerrard: Moving on to the next slide, please. You'll see the results as we work our way through the profit and loss. Top line revenue up at $267 million, driven by those ounces and the higher gold price that I'd spoken to. Our royalty this year was up at $13.5 billion.

Speaker #1: Moving on to the next slide, please. You'll see the results as we work our way through the profit and loss.

Speaker #1: So, top line revenue was up to $267 million, driven by those increases in the higher gold price that I'd spoken to. Our royalty this year was up at $313.5 billion.

Speaker #1: That is driven by the higher revenue number. And I would draw your attention to the change in the royalty rates as they deliver our ounces at over $5,000 an ounce.

Ross Jerrard: That is driven by the higher revenue number. I would draw your attention to the change in the royalty rates. As we deliver ounces at over $5,000 an ounce, they do attract an additional 5% royalty charge. Our production cost, as already indicated, are up some 25%, and depreciation charges were largely unchanged. We're very pleased with our gross profit that was generated, up some 78% for the year, driven by those improved margins and thanks to the gold price. You'll see the net foreign exchange losses was down from $9.7 million down to $3.3 million this year. Again, that was a very pleasing result in terms of the exchange differential that we had historically seen.

Speaker #1: They do attract an additional 5% royalty charge. Our production costs, as already indicated, are up some 25%, and depreciation charges were largely unchanged.

Speaker #1: So, we're very pleased with our gross profit. That was generated, up some 78% for the year, driven by those improved margins.

Speaker #1: And thanks to the gold price, you'll see the net foreign exchange losses were down from $9.7 million to $3.3 million this year.

Ross Jerrard: You'll see the net foreign exchange losses was down from $9.7 million down to $3.3 million this year. Again, that was a very pleasing result in terms of the exchange differential that we had historically seen. We're very pleased with the ability to access the willing buyer, willing seller market. The $8.5 million is the profit on our solar plant. I won't talk to that.

Speaker #1: And again , that was a very pleasing result in terms of the the exchange differential that we had historically seen . And we're very pleased with the ability to access the willing buyer , willing seller market at $8.5 million is the profit on our solar plant .

Ross Jerrard: We're very pleased with the ability to access the willing buyer, willing seller market. The $8.5 million is the profit on our solar plant. I won't talk to that. We've gone through that in previous results presentations, but it was pleasing in terms of being able to sell that asset, generate proceeds that we could then deploy across the group. I would draw your attention to the administration costs, that $20.48 million. That is higher than historical run rate and general trending that we see going forward.

Speaker #1: I won't talk to that . We've gone through that in previous results presentations , but it was pleasing in terms of being able to sell that asset , generate proceeds that we could then deploy across the group .

Ross Jerrard: We've gone through that in previous results presentations, but it was pleasing in terms of being able to sell that asset, generate proceeds that we could then deploy across the group. I would draw your attention to the administration costs, that $20.48 million. That is higher than historical run rate and general trending that we see going forward.

Speaker #1: I would draw your attention to the administration costs at $20.48 million. That is higher than the historical run rate and the general trending that we see going forward this year.

Ross Jerrard: This year, we have incurred some quite significant one-off fees, predominantly around our advisory fees, related to the convertible, some additional employee costs that have gone through the system, and some other transaction costs that we don't see ongoing, and we think that run rate will come off by some 10%, 12%, more closer to a $17 million type number on a per annum basis. We've incurred a fair value loss on our derivative financial instruments. Those are the hedging instruments that we've put in place to protect our site, our mine and the gold price at the $3,500 gold price. Those hedging instruments are really put through the P&L.

Speaker #1: We have incurred some quite significant one off fees , predominantly around our advisory fees related to the convertible . Some additional employee costs that have gone through the system and some other transaction costs that we don't see ongoing .

Speaker #1: And we think that run rate will come off by some 10%, 12% more, more closer to a $17 million type number on a per annum basis.

Ross Jerrard: We've incurred a fair value loss on our derivative financial instruments. Those are the hedging instruments that we've put in place to protect our site, our mine and the gold price at the $3,500 gold price. Those hedging instruments are really put through the P&L.

Speaker #1: We've incurred a fair value loss on our derivative financial instruments. So, those are the hedging instruments that we put in place to protect our side, our mine, and the gold price at a $3,500 gold price.

Speaker #1: So those hedging instruments are really put through the P&L. We don't do any hedge accounting or anything that is nuanced to that.

Ross Jerrard: We don't do any hedge accounting, or anything that is nuanced to that extent, so everything goes through the profit and loss. We were delighted with the ultimate profit before tax of $106 million, up 162%. The tax expense was higher off this great result, but also included the capital gains tax on the solar plant sale, which pushed up that tax expense a bit more than a normal run rate. Delighted with our P&L result, with our overall profit for the period of $67.5 million. If we can move on to the next slide, please. Let's quickly touch on some of those aspects from a cash flow perspective.

Speaker #1: And extent . So everything goes through the profit and loss . And we were delighted with the ultimate profit before tax of $106 million , up 162% .

Speaker #1: The tax expense was higher off this great result , but also included the capital gains tax on the solar plant sale , which pushed up those tax expense a bit more than normal run rate .

Speaker #1: But delighted with our with our PNL result with our overall profit for the period of 67.5 million . If we can move on to the next slide , please , let's quickly touch on some of those aspects from a cash flow perspective .

Ross Jerrard: If we can move on to the next slide, please. Let's quickly touch on some of those aspects from a cash flow perspective.Our cash flow from operations was up at $105 million, up 90%. I've spoken to interest and tax payments, which included that solar sale. Our CapEx was on track in terms of what we had guided the market in terms of expenditures.

Speaker #1: So our cash flow from operations was up at $105 million , up 90% , 90% . I've spoken to interest in tax payments , which included that solar sale , our CapEx was on track in terms of what we had guided the market in terms of expenditures and the proceeds from the sale and the gross proceeds from the solar sale were able to be deployed into our treasury options , where we deployed those into various fixed term deposits during the year and were able to allocate Central treasury and start our Treasury function .

Ross Jerrard: Our cash flow from operations was up at $105 million, up 90%. I've spoken to interest and tax payments, which included that solar sale. Our CapEx was on track in terms of what we had guided the market in terms of expenditures. The proceeds from the sale, the gross proceeds from the solar sale were able to be deployed into our treasury operations, where we deployed those into various fixed-term deposits during the year. We're able to allocate central treasury and start our treasury function as we look to Bilboes and beyond. Ultimately, our net cash used in investing activities was able to then be deployed across some dividends paid.

Ross Jerrard: The proceeds from the sale, the gross proceeds from the solar sale were able to be deployed into our treasury operations, where we deployed those into various fixed-term deposits during the year. We're able to allocate central treasury and start our treasury function as we look to Bilboes and beyond. Ultimately, our net cash used in investing activities was able to then be deployed across some dividends paid.

Speaker #1: As we as we look to build those and beyond . Ultimately , our net cash used in investing activities was able to then be deployed across some dividends paid .

Speaker #1: So the $19.9 million was a result of dividends paid both to our C and C shareholders of $10.8 million, but also to G.

Ross Jerrard: The 19.9 million dollars was a result of dividends paid both to our CMC shareholders of $10.8 million, but also to G. Scott & Neff. Our various partners at the Blanket Mine level in terms of deployment got $5.5 million and $3.6 million respectively. Ultimately, a very pleasing close to the period with a net increase in cash and cash equivalents of $32 million for the year, which was a great result. If we move to the next slide, you'll see our overall liquidity, and what it means is that we exited the year with cash on hand of $35.7 million.

Speaker #1: Scott . And so there are various partners at the blanket mine level in terms of deployment . So they got five and a half and $3.6 million respectively .

Speaker #1: Ultimately , a very pleasing close to the period with a net increase in cash and cash equivalents of $32 million for the year , which was which was a great result .

Speaker #1: And if we move to the next slide , you'll see our overall liquidity and what it means is that we exited the year with cash on hand of $35.7 million .

Speaker #1: And if you add in our bullion on hand at year end , plus some gold sales receivables and our fixed term deposits , we before utilization of facilities , we had almost $60 million .

Ross Jerrard: If you add in our bullion on hand at year-end, plus some gold sales receivables and our fixed term deposits, before utilization of facilities, we had almost $60 million available to us. A total liquidity of just under $55 million. Very pleasing result and a very solid position in terms of our performance for the year. On top of that, in early 2026, we were able to successfully complete a $150 million convertible note offering, whereafter, inputting a cap call structure, we received a net $130 million.

Speaker #1: Available to us and a total liquidity of just under $55 million. So, very pleasing result and a very solid position in terms of our performance for the year.

Speaker #1: On top of that, in early 2026, we were able to successfully complete a $150 million convertible note offering. Thereafter, inputting a cap hall structure.

Speaker #1: We received a net $130 million . So post year end , we're in a very healthy cash position . As we look to further development of blanket .

Ross Jerrard: Post-year end, we're in a very healthy cash position, as we look to further development of Blanket, but importantly as we start our deployment and our spend on our Bilboes project, which I'll talk to in a couple of minutes. Moving on. I'd mentioned that CapEx was largely on track, and you'll see our various expenditures that were aligned with guidance. Nothing that stood out in terms of where we spent the money. Ongoing sustaining capital expenditure was really about underground mine development, where we spent 22% of the CapEx budget. That was really development and looking at new mine mining areas and underground developments targeting additional reserves and resources.

Speaker #1: But importantly, as we start our deployment and our spend on our Bilbo's project, which I'll talk to you about in a couple of minutes.

Speaker #1: So moving on I'd mentioned that CapEx was largely on track , and you'll see our various expenditures that were aligned with guidance . So nothing that stood out in terms of where we where we spent the money .

Ross Jerrard: Nothing that stood out in terms of where we spent the money. Ongoing sustaining capital expenditure was really about underground mine development, where we spent 22% of the CapEx budget. That was really development and looking at new mine mining areas and underground developments targeting additional reserves and resources.

Speaker #1: But ongoing sustaining capital expenditure was really about underground mine development, where we spent 22% of the CapEx budget. And that was really development.

Speaker #1: And looking at new , new mine mining areas and underground developments targeting additional reserves and resources , 31% of of the spend was sitting in the engineering department .

Ross Jerrard: 31% of the spend was sitting in the engineering department, and that covered the whole bouquet of electrical, mechanical, and central shaft upgrading and engineering. Then there was 27% that went across the other mining departments in terms of mines, milling, and the MRM department. Our only non-sustaining CapEx project was the tailings storage facility, and that accounted for 20% of the CapEx spend. Turning to the next slide, you'll see the slice of where those various spends occurred in terms of sustaining and non-sustaining splits. We were pleased that we were able to deliver those CapEx projects and continue to invest in the mine for the future with some solid cash flow generation.

Speaker #1: And that covered the whole bouquet of electrical, mechanical, and central shaft upgrading and engineering. And then there was 27% that went across to other mining departments, in terms of mines, milling, and the MRM department.

Speaker #1: The only non-sustaining CapEx project was the tailings storage facility, and that accounted for 2.0% of the CapEx spend. So, turning to the next slide.

Ross Jerrard: Turning to the next slide, you'll see the slice of where those various spends occurred in terms of sustaining and non-sustaining splits. We were pleased that we were able to deliver those CapEx projects and continue to invest in the mine for the future with some solid cash flow generation. If we move to the next slide, please. Closing off on CapEx, you will see in the announcement that there's been some additional CapEx approvals by the board.

Speaker #1: You'll see the slice of where those various spends have occurred in terms of the sustaining and non-sustaining split. But we were pleased that we were able to deliver those CapEx projects.

Speaker #1: And continue to invest in the mine for the future with some solid cash flow generation . If we move to the next slide , please Closing off on on CapEx , you will see in the announcement that there's been some additional CapEx approvals by the board .

Ross Jerrard: If we move to the next slide, please. Closing off on CapEx, you will see in the announcement that there's been some additional CapEx approvals by the board. Our total group capital expenditure for this financial year, 2026, is projected to be $178.9 million. The two key projects that were approved last week by the board was a $14.2 million construction of a $34 million power line connecting to the 132 kV backbone and a $2.2 million dollar allocation against the central winder for the central shaft, converting it from AC to DC.

Ross Jerrard: Our total group capital expenditure for this financial year, 2026, is projected to be $178.9 million. The two key projects that were approved last week by the board was a $14.2 million construction of a $34 million power line connecting to the 132 kV backbone and a $2.2 million dollar allocation against the central winder for the central shaft, converting it from AC to DC.

Speaker #1: So a total group capital expenditure for this financial year , 2026 is projected to be $178.9 million . The two key projects that were approved last week by the board was a 14.2 million construction of a $34 million power line , connecting to the 132 kV backbone and a $2.2 million allocation against the central winder for the central shaft , converting it from AC to DC .

Speaker #1: Both projects are great projects with quick payback periods and really underwriting some solid reliability in terms of power usage at the mine , and also some imperative upgrades in terms of the underground mine .

Ross Jerrard: Both projects are great projects with quick payback periods and really underpinning some solid reliability in terms of power usage at the mine, and also some imperative upgrades in terms of the underground mine. We're looking to the future, investing in the future and making sure that some of these critical projects are delivered. Over and above that, sustaining CapEx, we have $136 million allocated, primarily against Bilboes, where $132 million is anticipated to be spent against both the feed phase but also some early deployment of expenditures against the Bilboes project. Just shy of $4 million, which is further exploration at the Motapa project. If we can move to the next slide, please.

Speaker #1: So we're looking to the future, investing in the future, and making sure that some of these critical projects are delivered over and above that, sustaining CapEx.

Ross Jerrard: Over and above that, sustaining CapEx, we have $136 million allocated, primarily against Bilboes, where $132 million is anticipated to be spent against both the feed phase but also some early deployment of expenditures against the Bilboes project. Just shy of $4 million, which is further exploration at the Motapa project. If we can move to the next slide, please.

Speaker #1: We have $136 million allocated primarily against Bilboes , where $132 million is anticipated to be spent against both the feed phase , but also some early deployment of expenditures against the Bilboes project .

Speaker #1: And then just shy of $4 million, which is further exploration at Project. If we can move to the next slide, please.

Speaker #1: We're delighted that the results of 2025 have delivered a solid performance , and we continually , looking at that balance of our capital allocation in terms of both growth projects and shareholder returns , and as you can see in the CapEx that we've both delivered and planned to deliver , we're looking at growth for the future and investing in that future for the long term .

Ross Jerrard: We're delighted that the results of 2025 has delivered a solid performance, and we're continually looking at that balance of our capital allocation in terms of both growth projects and shareholder returns. As you can see in the CapEx that we've both delivered and plan to deliver, we're looking at growth for the future and investing in that future for the long term, but equally conscious of our shareholders' returns. We're delighted to have another dividend, a quarterly dividend of $0.14 per share. Dividends have been paid since 2012, so we continue with that continued payment of dividends and balancing both growth and shareholder returns. I'll just draw your attention to the key dates in terms of that dividend payment.

Speaker #1: But equally conscious of our shareholder returns. So we're delighted to have another dividend, a quarterly dividend of $0.14 per share.

Ross Jerrard: We're delighted to have another dividend, a quarterly dividend of $0.14 per share. Dividends have been paid since 2012, so we continue with that continued payment of dividends and balancing both growth and shareholder returns. I'll just draw your attention to the key dates in terms of that dividend payment.

Speaker #1: Dividends have been paid since 2012. So we continue with that, that continued payment of dividends and balancing both growth and shareholder returns.

Speaker #1: And others . Draw your attention to the key dates in terms of that dividend payment . So if we can switch to the next slide , please , I'll now take the opportunity to hand it across to Victor to talk a little bit more about Bilbo's .

Ross Jerrard: If we can switch to the next slide, please. I'll now take the opportunity to hand it across to Victor to talk a little bit more about Bilboes.

Speaker #2: Thank you , Ross , can we move to the next slide with regards to Bilbo's , we've previously announced that the board approved this project implementation are in November last year .

Victor Gapare: Thank you, Ross. Can we move to the next slide? With regards to Bilboes, we've previously announced that the board approved this project implementation in November last year. Basically, all the parameters which are in there, we've announced them before. An IRR of 32.5% at a gold price of $2,548. Obviously, these, the returns are materially higher at prevailing spot gold prices. Can we move on to the next slide? Basically what we've shown here are really the economics at three different prices. The consensus forecast of $2,548 per ounce. The three-year trailing average price of $2,350 price.

Speaker #2: Basically, all the parameters which are in there—we have announced them before. An IRR of 32.5% at a gold price of $2,548.

Victor Gapare: Obviously, these, the returns are materially higher at prevailing spot gold prices. Can we move on to the next slide? Basically what we've shown here are really the economics at three different prices. The consensus forecast of $2,548 per ounce. The three-year trailing average price of $2,350 price.

Speaker #2: Obviously these are the returns are materially higher at prevailing spot gold prices . Can we move on to the next slide ? Basically , what we've shown here are , are really the economics at three different prices .

Speaker #2: The consensus forecast of 2,548 USD per ounce . The three year trailing average price of 2,350 USD . Price , and the price at which was on 10th March 2026 , which was 5,177 USD per ounce .

Victor Gapare: The price at which was on 10 March 2026, which was $5,177 per ounce. Obviously, there's been some volatility in the price of gold. Those figures at the end there, you can put any price you want in, you can come up with margins. But clearly, you can see, you will see that, the economics changes quite significantly if we apply the current economics. That's all we're showing. Effectively, what we've done is we've started implementing the project following approval. As Ross has said, we've raised some money and we've appointed an EPCM contractor, and that work has started. The plan is to have the first gold pour towards the end of 2028.

Speaker #2: Obviously , there's been some volatility in the price of gold , so those figures at the end there , you can put any price you want and you can come up with a different R r r margins .

Speaker #2: clearly you can see you will see that the economics change is quite significantly . If we apply the current economics . That's all we're showing .

Victor Gapare: That's all we're showing. Effectively, what we've done is we've started implementing the project following approval. As Ross has said, we've raised some money and we've appointed an EPCM contractor, and that work has started. The plan is to have the first gold pour towards the end of 2028.

Speaker #2: So effectively , what we've done is we've started implementing the project following approval . As Ross has said , we've raised some money and we've appointed an EPC contractor .

Speaker #2: And that work has started. And we are hoping for—the plan is to have the first gold pour towards the end of Q4.

Speaker #2: Are 2028 , and our first year of full production will be 2029 , which would be at just about 200,000oz per year . That's peak production .

Victor Gapare: Our first year of full production will be 2029, which would be at just about 200,000 ounces per year. That's peak production. Can we move to the next slide? Ross will cover the funding aspect, what we have done and what we're planning to do. Ross, over to you.

Speaker #2: Can we move to the next slide? Ross will cover the funding aspects: what we have done and what we're planning to do.

Speaker #2: Ross, over to you.

Speaker #1: Thank you , Victor . So our funding strategy for Bilbo is covered for funding pillars . And we're delighted with our progress in terms of how we're tracking against that strategy .

Ross Jerrard: Thank you, Victor. Our funding strategy for Bilboes has covered four funding pillars, and we're delighted with our progress in terms of how we're tracking against that strategy. The first phase was underwriting our blanket production and securing a series of put options at a price of $3,500 per ounce that covered a three-year period from January 2026 to December 2028, effectively the construction period. The key elements of that hedging strategy was really to provide a floor to the cash flows that were generated.

Speaker #1: The first phase was underwriting our blanket production and securing a series of put options at a price of $3,500 per ounce . That covered a three year period from January 26th to December 28th , effectively , the construction period .

Speaker #1: The key elements of that hedging strategy was really to provide a floor to the to the cash flows that were generated . It wasn't giving up any upside in terms of gold price above $3,500 , but it did enable us to basically earmark the best part of $200 million from our own operations that we could deploy against the Bilboes project at prices closer to $5,000 an ounce .

Ross Jerrard: It wasn't giving up any upside in terms of gold price above $3,500, but it did enable us to basically earmark the best part of $200 million from our own operations that we could deploy against the Bilboes project. At prices closer to $5,000 an ounce, that $200 million escalates to closer to $300 million. It's a core cornerstone strategy in terms of using our current asset on the portfolio to underwrite the strategy. It also helped us in terms of our pricing discussions with the various banks and financial institutions in terms of how we'd sort of take on our various debt facilities.

Speaker #1: That $200 million escalates to closer to $300 million. So it's a core, core cornerstone strategy in terms of using our current asset on the portfolio to underwrite the strategy.

Speaker #1: It also helped us in terms of our pricing discussions with the various banks and financial institutions, in terms of how we sort of take on our various debt facilities.

Speaker #1: The second step, as you've seen previously mentioned, is the raising of some funds from a convertible note offering. It was a $150 million raise.

Ross Jerrard: The second step, as you've seen, and previously mentioned, is the raising of some funds from a convertible note offering. It was a $150 million raise. It was upsized from $100 million due to some amazing demand out of the US, and we're delighted with the result that we were able to receive those funds in short order. We were able to also allocate some of those funds against a capped call structure, which effectively increased the conversion price to $56 a share up from the $40 a share. Those two steps one and two, have been completed and has enabled us to be able to move forward in short order in terms of the remaining funding facilities.

Speaker #1: It was upsized from $100 million due to some amazing demand out of the US . And we're delighted with the result that we were able to receive those those funds , in short order , and we were able to also allocate some of those funds against a capital structure which effectively increased the conversion price to $56 a share , up from the $40 a share .

Ross Jerrard: We were able to also allocate some of those funds against a capped call structure, which effectively increased the conversion price to $56 a share up from the $40 a share. Those two steps one and two, have been completed and has enabled us to be able to move forward in short order in terms of the remaining funding facilities.

Speaker #1: So those two steps , steps one and two have been completed and has enabled us to be able to move forward . In short order in terms of the remaining remaining funding facilities , the first one is an interim funding facility .

Ross Jerrard: The first one is an interim financing facility, so we're currently in negotiations with a consortium of both Zimbabwean and South African banks to raise $150 million facility. You would have seen the announcement in terms of appointing Standard Bank and CBZ as co-lead arrangers for that facility. We're targeting the middle of this year to get that facility in place. The cornerstone of that is against the Blanket Mine cash flows. In parallel with that, the fourth arm is really the project finance facility. A longer burn rate in terms of getting that facility in place, but that formal process has commenced, and we're expecting that to be delivered in the next 12 months with the various due diligence procedures.

Speaker #1: So we are currently in negotiations with a consortium of both Zimbabwean and South African banks to raise a $150 million facility. You would have seen the announcement in terms of appointing Standard, Stanbic, and KBS as co-lead arrangers for that facility.

Speaker #1: And we targeting the middle of the of this year to to get that facility in place . And the cornerstone of that is again , again , the blanket mine cash flows .

Ross Jerrard: The cornerstone of that is against the Blanket Mine cash flows. In parallel with that, the fourth arm is really the project finance facility. A longer burn rate in terms of getting that facility in place, but that formal process has commenced, and we're expecting that to be delivered in the next 12 months with the various due diligence procedures.

Speaker #1: And in parallel with that, the fourth arm is really the project finance facility, along the burn rate, in terms of getting that facility in place. But that formal process has commenced.

Speaker #1: And we're expecting that to be delivered in the next 12 months, with the various due diligence procedures. So we're very pleased with where we're positioned with it.

Ross Jerrard: We're very pleased around where we're positioned with it, what we've done to date in terms of underwriting that financing strategy, and we're on track in terms of the discussions with the various banks and financial institutions. If we turn to the next slide, we'll just illustrate our, I guess, our thought process and the overview in terms of our sources and uses and actually how we believe that this funding requirement will be met. I'll refer you to the right-hand side of the slide in the first instance in terms of the use of funds. You'll see our capital cost is basically $485 million.

Speaker #1: What we've done to date in terms of underwriting that financing strategy, and we're on track in terms of the discussions with the various banks and financial institutions.

Speaker #1: If we turn to the next slide , we're just illustrate , I guess , our thought process and the overview in terms of our sources of uses .

Speaker #1: And actually, how we believe that this funding requirement will be set—I'll refer you to the right-hand side of the slide.

Ross Jerrard: I'll refer you to the right-hand side of the slide in the first instance in terms of the use of funds. You'll see our capital cost is basically $485 million. When you add in our capitalized interest and some working capital, the ask is closer to $600 million in terms of a package. On the left-hand side, you'll see the column at $3,500 an ounce, and you can see, together with our cash and our net proceeds from the convertible bond and our forecast future cash flows, the ask from our senior debt and other facilities is just over $300 million in terms of delivery of those funds.

Speaker #1: In the first instance , in terms of the use of funds . So you'll see our capital cost is basically 405 $485 million .

Speaker #1: But when you add in our capitalized interest and some working capital , the ask is closer to $600 million in terms of a package on the left hand side , you'll see the the column at 3500 dollars an ounce , and you can see together with our cash and our net proceeds from the convertible bond and our forecast future cash flows , the ask from a senior debt and other facilities is just over $300 million in terms of delivery of , of , of those funds .

Ross Jerrard: When you add in our capitalized interest and some working capital, the ask is closer to $600 million in terms of a package. On the left-hand side, you'll see the column at $3,500 an ounce, and you can see, together with our cash and our net proceeds from the convertible bond and our forecast future cash flows, the ask from our senior debt and other facilities is just over $300 million in terms of delivery of those funds. If we move that pricing deck up to $5,000 an ounce, you'll see that senior debt and other facilities reduces down to closer to $170 million.

Ross Jerrard: If we move that pricing deck up to $5,000 an ounce, you'll see that senior debt and other facilities reduces down to closer to $170 million. We're well on track in terms of getting that funding in place between both the interim and the wider project finance facilities. We're really pleased in terms of the status of the financing work stream.

Speaker #1: If we move that pricing deck up to $5,000 an ounce, you'll see that senior debt and other facilities reduce down to closer to $170 million.

Speaker #1: And we well on track in terms of getting that funding in place between both the interim and the wider project finance facility . So we're really pleased in terms of the status of the financing workstream , the importantly , we've got some big spend that is coming up .

Ross Jerrard: We're well on track in terms of getting that funding in place between both the interim and the wider project finance facilities. We're really pleased in terms of the status of the financing work stream. Importantly, we've got some big spend that is coming up, so we need to deploy the best part of $130 million in Q3 and Q4 of this year as we start the more significant spend on the Bilboes project. We're excited about that. Well, on track with that, I think it's all coming together very nicely. With that, I'll hand it across to Craig Harvey.

Ross Jerrard: Importantly, we've got some big spend that is coming up, so we need to deploy the best part of $130 million in Q3 and Q4 of this year as we start the more significant spend on the Bilboes project. We're excited about that. Well, on track with that, I think it's all coming together very nicely. With that, I'll hand it across to Craig Harvey.

Speaker #1: So we need to deploy the best part of $130 million in the third and fourth quarters of this year, as we start the more significant spend on the project.

Speaker #1: And we're excited about that . Well on track with that and I think it's all coming together very nicely . So with that , I'll hand it across to Craig Harvey

Speaker #3: Thank you, Ross. I'll just give you—I'll give you an overview of the exploration activities that have been taking place at MTPA and Blanket in the past year.

Craig Harvey: Thank you, Ross. I'll just give you an overview of the exploration activities that have been taking place at Motapa and Blanket in the past year. If you could go on to the next slide, please. 2024 and 2025, Caledonia has put quite a lot of money into Motapa. I mean, we have drilled surface drill holes totaling just under 30,000 meters. It's a very strategic asset. As we can see on the map on the screen, it's located directly to the south of the Bilboes project, which we have just heard about. That kind of scale from Motapa north to Bilboes is between 200 to 400 meters away. I think we can all draw, you know, our own conclusions as to the synergies between Bilboes and Motapa.

Speaker #3: So if you could go on to the next slide, please. So, 2024 and 2025, Caledonia's put quite a lot of money into.

Speaker #3: Metop-a . I mean , we have drilled surface drill holes totaling just under 30,000m . It's a very strategic asset . As you can see on the map , on the screen , it's located directly to south of the project , which we have just heard about .

Craig Harvey: As we can see on the map on the screen, it's located directly to the south of the Bilboes project, which we have just heard about. That kind of scale from Motapa north to Bilboes is between 200 to 400 meters away. I think we can all draw, you know, our own conclusions as to the synergies between Bilboes and Motapa.

Speaker #3: That kind of scale from the top and north to Balboa is between 200 to 400m away . So I think we can all draw , you know , draw our own conclusions as to the synergies between Baba's and Tapa , bearing in mind it's it's basically hosted in the same share zone .

Craig Harvey: Bear in mind, it's basically hosted in the same shear zone. Mineralogy, metallurgy is expected to be quite similar. Going forward for 2026, we have had a further allocation of $3.8 million exploration. We will continue looking at Maputsi, and we're going to focus on Motapa South for the year. Clearly there is potential for a sulfide resource below the historic open pits, but at the same time, there's a strong potential for oxides to the east. We have put in 2 drill holes to have a look. Results were encouraging. Things to look out for at Motapa, during Q2 2026, the company will be publishing a maiden resource estimate.

Speaker #3: Mineralogy . Metallurgy is expected to be quite similar . So going forward for 2026 , we have had a further allocation of $3.8 million exploration .

Speaker #3: We will continue looking at . And we're going to focus on . Metop-a south for the year . Clearly , there is potential for a sulfide resource below the historic open pits , but at the same time , there's a strong potential for oxides to the east .

Speaker #3: We have put in drills to have a look . Results were encouraging , so things to look out for at metop-a during Q2 2026 , the company will be publishing a maiden resource estimate , or probably be publishing a maiden resource estimate .

Craig Harvey: We have put in 2 drill holes to have a look. Results were encouraging. Things to look out for at Motapa, during Q2 2026, the company will be publishing a maiden resource estimate. We are just waiting for some of the final QA/QC checks of the data and geological interpretations to be complete. In all likelihood, during Q2 2026, we'll see what the drilling activities have actually given us. If you can move on to the next slide, please.

Craig Harvey: We are just waiting for some of the final QA/QC checks of the data and geological interpretations to be complete. In all likelihood, during Q2 2026, we'll see what the drilling activities have actually given us. If you can move on to the next slide, please. During 2025, there's been a continued deep hole or long hole exploration program at Blanket. Just to give you an overview of the areas that we are drilling. On the northern side of the property, which is to the left of the image, there where you can see Lima, it's the Lima and Eureka ore bodies. To the south on the right of the image, it's the mainstay of the mine. It's the Blanket and, the Blanket Quartz Reef ore bodies.

Speaker #3: We are just waiting for some of the final QA , QC checks of the data and geological interpretations to be complete , but in likelihood , during Q2 of 2026 , we will see what the drilling activities have actually given us .

Speaker #3: If we can move on to the next slide , please . So during 2025 . There's been a continued deep hole or long hole exploration program at blanket .

Craig Harvey: During 2025, there's been a continued deep hole or long hole exploration program at Blanket. Just to give you an overview of the areas that we are drilling. On the northern side of the property, which is to the left of the image, there where you can see Lima, it's the Lima and Eureka ore bodies. To the south on the right of the image, it's the mainstay of the mine. It's the Blanket and, the Blanket Quartz Reef ore bodies.

Speaker #3: So just to give you an overview of the areas that we are drilling . So on the , so on the northern side of the property , which is to the left of the image there where you can see Lima , it's the Lima and Eroica Orebodies .

Speaker #3: And to the south on the right of the image , it's the mainstay of the mine . It's the blanket and the blanket .

Speaker #3: Quartz reef , all bodies . So I'll zoom into a bit more detail on each of these areas . If you could move on to the next slide , please .

Craig Harvey: I'll zoom into a bit more detail on each of these areas. If we could move on to the next slide, please. On the Blanket side, where we've got essentially a whole bunch of ore bodies that come together, AR South, the Blanket Quartz Reef and the Blanket ore bodies. The Blanket ore bodies are Blanket One through to Blanket Six. Of course we've also got Blanket Seven now. But what is important to note here. I've got a grade legend on the side of the map there. Really what you want to be looking for is the little purple stripes that you see coming from those drill hole traces. Anything that is purple there is five grams per ton plus.

Speaker #3: So on the blanket side , where we've got essentially a whole bunch of bodies that come together are south , the blanket quartz reef and the blanket ore bodies and the blanket .

Speaker #3: All bodies are blanket one through to blanket six . So of course , we've also got blanket seven . Now . But what is important to note here ?

Craig Harvey: But what is important to note here. I've got a grade legend on the side of the map there. Really what you want to be looking for is the little purple stripes that you see coming from those drill hole traces. Anything that is purple there is five grams per ton plus.

Speaker #3: So, I've got a grade legend on the side of the map there, and really what you want to be looking for is the little purple stripes that you see coming off from those drill traces.

Speaker #3: So anything that is purple there is five is five grams a ton plus . Now in the next month or two again , we just finalizing some QA , QC checking from the lab , but we will be putting out a press release regarding the drilling results that we've done at blanket , and that will give us or it will give people insight into the widths that we encounter in these grades .

Craig Harvey: Now in the next month or two, again, we're just finalizing some QA/QC checking from the lab, but we will be putting out a press release regarding the drilling results that we've done at Blanket, and that will give us or it will give people insight into the widths that we encounter in these grades. Very, very exciting. So 34 level is the base of the Blanket mine currently. We are putting a decline, as you can see there, from 34 to 36 level. It's on 36 level at the moment. We are starting with the 36 level in infrastructure development. What is key to note. So 34 level, you know, 1,110 meters below surface.

Speaker #3: Very , very exciting . So 34 level is the base of the blanket mine . Currently , we are putting a a decline .

Craig Harvey: We are putting a decline, as you can see there, from 34 to 36 level. It's on 36 level at the moment. We are starting with the 36 level in infrastructure development. What is key to note. So 34 level, you know, 1,110 meters below surface. The deepest hole there that we have represented with those little blue, those little purple stripes, is 277m below 34 level.

Speaker #3: As you can see there, from 34 to 36 level. It's on 36 level at the moment. We are starting with the 36 level in infrastructure development.

Speaker #3: And what is key to note . So 34 level , you know , 1110m below surface . The deepest hole there that we have represented with as little blue , this little purple stripes is 277m below 34 level .

Craig Harvey: The deepest hole there that we have represented with those little blue, those little purple stripes, is 277m below 34 level. Now, 277m below 34 level equates to a depth of approximately 1,350m, which equates to a 42 level. Our kind of main levels are set up 34 to 38, 120m lifts apart. We are quite clearly looking at all things being equal. There's another 2 main lifts at Blanket that we are going to have a look at. Very, very encouraging. We carry on doing the work. Just to give a bit of reference.

Craig Harvey: Now, 277m below 34 level equates to a depth of approximately 1,350m, which equates to a 42 level. Our kind of main levels are set up 34 to 38, 120m lifts apart. We are quite clearly looking at all things being equal. There's another 2 main lifts at Blanket that we are going to have a look at. Very, very encouraging. We carry on doing the work. Just to give a bit of reference.

Speaker #3: Now 277m below 34 level equates to a depth of approximately 1350m , which equates to a 42 level . So the are kind of main levels are set up 34 to 38 , hundred and 20 meter lifts apart .

Speaker #3: So we are quite clearly looking at all things being equal . There's another two main lifts blanket that we are going to have a look at .

Speaker #3: Very , very encouraging . We carry on doing the work . Just to give a bit of reference . So if you had to move to the South .

Craig Harvey: If you had to move to the south, to the right of the image, we'll be putting in another hanging wall drill cubby to create another fan of drill holes in due course adjacent to these holes. This is kind of at the limit of our inferred resources. Clearly with this drilling coming in, we will be looking at upgrading inferred to indicated, as Mark, the CEO, has indicated, with a view to upgrading mineral resources and mineral reserves in due course. If we can move on to the next slide, which then focuses on the northern portion of Blanket Mine. On the very left, the very northern portion, the little bit of colorful goods that you see there, stopes, is the Lima ore body, and in the middle is the Eroica ore body.

Speaker #3: To the to the right of the image , we'll be putting in another hanging wall drill draw cubby to create another fan of drill holes .

Speaker #3: In due course . Adjacent to these holes . This is kind of at the limit of our inferred resources . So clearly with this drilling coming in , we will be looking at upgrading inferred to indicated as Mark the CEO has indicated with a view to upgrading mineral resources and mineral reserves in due course .

Speaker #3: So if we can move on to the next slide , which then focuses on the northern portion of blanket mine . So on the very left , the very northern portion a little bit of colorful goods that you see there , stopes is the Lima ore body .

Speaker #3: And in the middle is a Royco body. Now, a Rocha has been a mainstay, and why do we only see a couple of drills?

Craig Harvey: Now, Eroica has been a mainstay. Why you only see a couple of drill holes there is the majority of this area was drilled during 2023 and 2024. You can already see some of the development that's accessing these areas. The majority of this area is now indicated resource. But you can also see that there's a long hole that's also maybe 60 meters below 34 level. Currently on a 36 level type horizon. Clearly, as we advance 34 level, we'll have a hanging wall cubby put in place and we will continue drilling on the Eroica ore body from 34 level down to 42 level. On the left-hand side with Lima, again, you can see some of those little purple stripes, which represents 5 grams per ton plus.

Speaker #3: The majority of this area was drilled during 2023 and 2024. You can already see some of the development that's accessing these areas.

Speaker #3: The majority of this area is now indicated, indicated resource, but you can also see that there's a long haul that's also maybe 60 m below 34 level.

Craig Harvey: Currently on a 36 level type horizon. Clearly, as we advance 34 level, we'll have a hanging wall cubby put in place and we will continue drilling on the Eroica ore body from 34 level down to 42 level. On the left-hand side with Lima, again, you can see some of those little purple stripes, which represents 5 grams per ton plus.

Speaker #3: So currently, on a 36-level type, here clearly as we advance 34 level, we will have a hanging wall cubby put in place and we will continue drilling on the core body from 34 level down to 42 level.

Speaker #3: On the left hand side with Lima . Again , you can see some of the little purple stripes which represents five five plus One hole on purpose .

Craig Harvey: One hole on purpose, we pushed down to around the 34 level mark to test the depth to see that we're not wasting our money. We did pick up the Lima ore body, but Lima itself is not one single ore body. It's made up of six ore bodies. So there's a lot of scope to continue doing this. The lowest level of mining on Lima is at 750 meters below surface. You can just work out for yourself, if we take it down another 250 to 300 meters, you know, we talking 22 level to 34 level of mineral resources that may be exploited. Again, below 22 level, it's inferred resources on Lima.

Speaker #3: We pushed down to around to around the 34 level mark to test the depth to see that we're not wasting our money . We .

Speaker #3: We did pick up the Lima Orebody , but Lima itself is not one single ore body . It's made up of six ore bodies So there's a lot of scope to continue doing this .

Speaker #3: The lowest level of mining on Lima is at 750 meters below surface. You can just work that out for yourself. If we take it down another 250 to 300 meters, we, you know, we’re talking 22 level to 34 level of mineral resources that may be exploited.

Speaker #3: Again below 22 level . It's inferred resources on Lima with with with the drilling coming in , we will be looking at including that and seeing if we can upgrade some of the inferred resources into an indicated resource or better .

Craig Harvey: With the drilling coming in, we will be looking at including that and seeing if we can upgrade some of the inferred resources into an indicated resource or better. In a nutshell, Blanket keeps on going. The grades still looking good. The widths, we obviously model what we are expecting to find with our drilling, and it continues to return similar, if not better, results at depth. Thank you for that. With that, I'll hand back to Mark to give some closing comments.

Speaker #3: So in a nutshell , blanket keeps on going . The grades still looking good , the grades , the widths . We obviously model what we are expecting to find with our drilling and the continues to return similar , if not better results at at depth .

Speaker #3: So thank you for that . With that , I'll hand back to Mark to give some closing comments . Good . Thank you Craig .

Mark Learmonth: Good. Thank you, Craig. We're kind of running out of time, so I just wanna draw your attention to an event that we hosted on the fringes of the Cape Town Mining Indaba in February. I was, along with five or six other foreign-owned Zimbabwean mining companies, hosted a briefing event where we invited representatives from the Zimbabwe government, so Minister of Mines, Minister of Finance, and the Reserve Bank, and the objective was to try and dispel some of the pervasive, continuing misunderstandings about what it's like to operate in Zimbabwe.

Speaker #3: We've kind of running out of time . So I just want to draw your attention to a , an event that we , we hosted at the on the fringes of the Cape Town Mining Indaba in February .

Speaker #3: I was, along with five or six other foreign-owned Zimbabwean mining companies, posted at a briefing event where we invited representatives from the Zimbabwe Government and the Minister of Mines, Minister of Finance, and the Reserve Bank to.

Speaker #3: The objective was to try and dispel some of the pervasive continued misunderstandings about what it's like to operate in Zimbabwe . It was very well attended and the way the representatives of the Zimbabwean authorities engaged in a very transparent , constructive way with the with the audience .

Mark Learmonth: It was very well attended, and the way the representatives of the Zimbabwean authorities engaged in a very transparent, constructive way with the audience, hopefully is a first step for many to trying to overturn some of these misunderstandings about Zimbabwe. That was very good. Can we move on to the next slide? Just to finish and move on to questions. Clearly our strategic focus after the fatality last year is to continue commitment to the safety of our people. Objective to maintain reliable and ongoing operations at Blanket, which, let's face it, is gonna be an important generator of the capital for the construction of Bilboes.

Speaker #3: Hopefully , as a first step , the first step of many to trying to overturn some of these misunderstandings about Zimbabwe . So that was very good .

Speaker #3: We'll move on to the next slide . So just just to just to finish and move on to questions . So clearly , our strategic focus after the fatality last year is to continue commitment to the safety of our people objective to maintain reliable and operations .

Mark Learmonth: Clearly our strategic focus after the fatality last year is to continue commitment to the safety of our people. Objective to maintain reliable and ongoing operations at Blanket, which, let's face it, is gonna be an important generator of the capital for the construction of Bilboes. As you heard from Craig, has very significant long-term extension plans in its own right. Leverage the strong gold price to invest in Blanket's projects, to create operating resilience and to mitigate further input cost pressures.

Speaker #3: That blanket , which let's face it , it's going to be an important generator of of capital for the construction of Bilbo's . But as you've heard from Greg , from Craig has very significant , significant long term extension plans in its own right .

Mark Learmonth: As you heard from Craig, has very significant long-term extension plans in its own right. Leverage the strong gold price to invest in Blanket's projects, to create operating resilience and to mitigate further input cost pressures. Moving along with Bilboes as quickly as we can, in terms of the financing and development plan, and to continue to explore at Motapa, which in due course we think will be a very exciting project. All of those together really mean that we're continuing to execute our strategy to become a multi-asset, Zimbabwe-focused gold producer. I think that's the end of the presentation. Can we open it up to questions, please?

Speaker #3: Leverage the strong gold price to invest in blankets, projects to create operating resilience, and to mitigate further input cost pressures. Moving along with Bilbo's.

Mark Learmonth: Moving along with Bilboes as quickly as we can, in terms of the financing and development plan, and to continue to explore at Motapa, which in due course we think will be a very exciting project. All of those together really mean that we're continuing to execute our strategy to become a multi-asset, Zimbabwe-focused gold producer. I think that's the end of the presentation. Can we open it up to questions, please?

Speaker #3: As quickly as we can in terms of the financing and development plan and to continue to explore it at the top , which in due course , we think will be very exciting project .

Speaker #3: So all of those together really mean that we're continuing to execute our strategy to become a , a multi asset . Zimbabwe focused gold producer .

Speaker #3: So I think that's the end of the presentation . Can we open it up to questions please ?

Speaker #4: Thanks very much, Mark. If I could just remind people, if they'd like to ask a question, if they could please use the raise hand button.

Operator: Thanks very much, Mark. If I could just remind people if they'd like to ask a question, if they could please use the Raise Hand button that's at the bottom of your screen. We'll just pause for a few seconds, just wait for people to raise their hands, in order to ask a question. Our first question is going to be from Howard Flinker. Howie, I've unmuted you. Please, unmute yourself and then please ask the question to the team.

Speaker #4: That's at the bottom of your screen. We'll just pause for a few seconds. Just wait for people to raise their hands in order to ask a question.

Speaker #4: Our first question is going to be from Howie Flinker. Howie, I've unmuted you. Please unmute yourself and then please ask the question to the team.

Speaker #5: Can you hear me now ?

Howard Flinker: Can you hear me now?

Speaker #3: Yep .

Mark Learmonth: Yep.

Speaker #5: What is the maturity of the convertible bond ? I have another question too .

Craig Harvey: What is the maturity of the convertible bond? I have another question, too.

Howard Flinker: What is the maturity of the convertible bond? I have another question, too.

Speaker #3: It is... I think it's seven. Is it seven years, Ross? It's a slightly longer-dated maturity than most convertibles. It's outside the—it's slightly—a slightly longer-dated maturity than most convertibles.

Mark Learmonth: It is, I think it's seven. Is it seven years, Ross? It's a slightly longer dated maturity than most convertibles. That was specifically so that it matures outside the timing of the scheduled repayment of the project finance. Ross, is it seven or was it slightly longer?

Speaker #3: And that was specifically so that it matures outside the the timing of the , of the schedule repayment of the project , project finance .

Speaker #3: Ross is it seven or is it slightly longer ?

Speaker #1: Seven years. Seven years?

Ross Jerrard: Seven years.

Mark Learmonth: Seven years.

Craig Harvey: 33.

Howard Flinker: 33.

Speaker #3: 33, yeah. So, next question. Howie.

Mark Learmonth: Yeah. Next question, Howard.

Speaker #5: Yeah, Aaron, I thought the solar plant was in the Jersey Island, so it would be...

Craig Harvey: Yeah.

Howard Flinker: Yeah. Aaron, I thought the solar plant was in the Jersey Island, so it would be.

Howard Flinker: Aaron, I thought the solar plant was in the Jersey Island, so it would be.

Mark Learmonth: Yeah, that would be a big mistake because it's not. It's often not very sunny here.

Speaker #3: That would be a big mistake because it's often not very sunny here.

Speaker #5: No, I thought that the ownership was there and it was tax free. What's the capital gains rate on that?

Howard Flinker: No, I thought the ownership was there and it was tax-free. What's the capital gains rate on that?

Mark Learmonth: Ross, do you know?

Speaker #1: It ended up being $2 million . So and there was a combination of some of it was on a on a total capital gain .

Ross Jerrard: It ended up being $2 million. There was a combination. Some of it was on a total capital gain, and there was a profit element, but it was $2 million.

Speaker #1: And there was a profit element. But it was $2 million.

Speaker #5: Oh. And what is the tax rate on the loss on the derivative? Is that a regular tax rate or something different?

Howard Flinker: Oh. What is the tax rate on the loss on the derivative? Is that a regular tax rate or something different?

Speaker #1: No . So the . Yeah , all the derivatives are held outside . So they all held here in corporate . And so it's 0% for the derivatives because they're sitting in Jersey .

Ross Jerrard: No. All the derivatives are held outside. They're all held here in corporate. It's 0% for the derivatives because they're sitting in Jersey.

Speaker #3: I think for practical purposes it would be very difficult , impossible to structure a derivative holding through through Zimbabwe . I think having to go through the the various rbz approval processes were just fly in the face of of being able to , you know , when you , when you decide to do these things , you do them very quickly .

Mark Learmonth: I think for practical purposes, it would be very difficult or impossible to structure derivative holdings through Zimbabwe. I think having to go through the various RBZ approval processes would just fly in the face of being able to. You know, when you decide to do these things, you do them very quickly. To have to pause for RBZ approval would just make it impossible.

Speaker #3: And to have to pause for RBZ approval would just, just make it impossible.

Speaker #5: So the effect tax rate on the derivative , pre-tax and post-tax is the same , right ? Zero taxes , zero .

Howard Flinker: The effective tax rate on the derivative pre-tax and post-tax is the same, right? Zero taxes.

Speaker #3: That's right .

Mark Learmonth: Zero. That's right.

Speaker #5: That's right. Yeah. And finally, I'm going to say this is pretty thorough financial accounting. Nice job.

Howard Flinker: Yeah. Finally, I'm gonna say this is pretty thorough financial accounting. Nice job.

Speaker #3: Thank you. Thank you, thank you.

Ross Jerrard: Thank you.

Mark Learmonth: Thank you, Bill.

Operator: Thanks so much for your question.

Speaker #5: You're welcome .

Howard Flinker: You're welcome.

Speaker #4: Harry, we've got our next question from Joseph Parish. Joseph, would you like to go ahead?

Operator: Harry. We've got our next question from Joseph Parrish. Joseph, would you like to go ahead?

Speaker #6: Yes . Great presentation in anticipated some of my questions . So this will simplify things a bit . The only thing I really had left to ask was has to do with power cost .

Joseph Parrish: Yes. Great presentation. It anticipated some of my questions, so this will simplify things a bit. Only thing I really had left to ask was has to do with power cost. You know, the solar plant, of course, was intended to keep those contained. You know, with the recent conflict in Middle East, right, there's some temporary increases in fuel and energy prices. Depending on how long this goes on and maybe just, you know, with the higher operating cash flow you're enjoying on the mine, would further investment in solar plant facilities at Blanket become a higher priority as you're looking at these, or are these something that is being con-

Speaker #6: You know , the solar plant , of course , was intended to to keep those contained , you know , with the recent conflict in the Middle East , right .

Speaker #6: There's some temporary increases in fuel and energy prices depending on how long this goes on . And maybe just , you know , with the , the higher operating cash flow .

Speaker #6: You're enjoying on the mind—would investment in solar plant facilities at Blanket become a higher priority as you're looking at these? Or is this something that's being considered?

Speaker #6: No .

Mark Learmonth: No.

Joseph Parrish: No?

Mark Learmonth: No, no it wouldn't. Let's just deal with our exposure to fuel. We've got Blanket uses about 2 million liters of fuel in a year. Approximately half of that is diesel generators, the other half is used on diesel equipment in the business. Last year's diesel price that represents about 3% of our OpEx. We're not particularly exposed to diesel in our operating costs. In terms of supply, we've got just over 6 months of supply, either on the property or on consignment stock, so we're not particularly exposed there. The problem with solar is that when the sun doesn't shine, you don't get solar. The particular issue we face right now is that the 132

Speaker #3: No , no , it wouldn't . So let's just let's just deal with our exposure to fuel . We've got blanket uses , about 2,000,000l of fuel , a year , approximately half of that is diesel generators .

Speaker #3: The other half is used on diesel equipment in the business . Last year's last year's diesel price that represents about 3% of our opex .

Speaker #3: So we're not particularly exposed to diesel in our operating costs. And in terms of supply, we've got just over six months of supply either on the property or on consignment stock.

Mark Learmonth: In terms of supply, we've got just over 6 months of supply, either on the property or on consignment stock, so we're not particularly exposed there. The problem with solar is that when the sun doesn't shine, you don't get solar. The particular issue we face right now is that the 132

Speaker #3: So we're not particularly exposed there . The problem , the problem with with solar is that when the sun doesn't shine , you don't get you don't get solar .

Speaker #3: And the particular issue we face right now is that the , the one , the , the , the way electricity gets through the grid to blanket means that the last sort of 30 odd kilometers goes through a pretty poorly maintained 33 kV line , which typically has bigger reliability problems when it's rainy .

Mark Learmonth: The way electricity gets through the grid to Blanket means that the last sort of 30-odd km goes through a pretty poorly maintained 33 kV line, which typically has bigger reliability problems when it's rainy. You got the combined effect of rain, which means that you got a higher chance of power interruptions from the grid, and also it means that the solar plants not working very well. The two issues kind of compound each other. What we're doing is we're putting in a 132 kV line to which we expect will reduce the average incidence of power outages from, say, 30 hours a month to an average of, say, 3 hours a month. That will reduce our reliance on diesel. To the extent...

Speaker #3: And so you've got the combined effect of rain, which means that you've got a higher chance of power interruptions from the grid.

Speaker #3: And also, it means that the solar plants are not working very well. So the two—the two, sort of, the two issues kind of compound each other.

Mark Learmonth: The two issues kind of compound each other. What we're doing is we're putting in a 132 kV line to which we expect will reduce the average incidence of power outages from, say, 30 hours a month to an average of, say, 3 hours a month. That will reduce our reliance on diesel. To the extent...

Speaker #3: So the what we're doing is we're we're putting in a 132 kV line to which we expect will reduce the average incidence of power outages from , say , 30 hours a month to an average of , say , three hours a month .

Speaker #3: And that will reduce our reliance on diesel and to the extent and once you connect it to the 132 kV line , that gives you much more , much more flexibility to access power , both in Zim and in the region where there is no shortage of power .

Mark Learmonth: Once you're connected to the 132 kV line, that gives you much more flexibility to access power, both in Zim and in the region where there is no shortage of power. Frankly, solar kind of compounds the problem, doesn't solve the problem. The simple answer to your question was no, I'm afraid.

Speaker #3: So , frankly , solar kind of compounds the problem doesn't doesn't solve the problem . So the the simple answer to your question was , no , I'm afraid .

Speaker #6: Okay . Well , I appreciate the detail . I'm sure investors will appreciate it as well . Thank you . Okay .

Joseph Parrish: Okay. Well, I appreciate the detail. I'm sure, investors will appreciate it as well. Thank you.

Mark Learmonth: Okay.

Speaker #4: Thank you. We're going to take our next question from Mike Kozak. Mike, unmuting you, please go ahead.

Operator: Thank you. We're going to take our next question from Mike Kozak. Mike, unmuting you. Please go ahead.

Speaker #7: Yeah , yeah . Good afternoon guys . You hear me ? Okay . Yep . Great . So two questions from me . First one , sustaining capital for for this year , it looks like it's increased 27 million to 43 million .

Mike Kozak: Yeah. Yeah. Good afternoon, guys. You hear me okay?

Mark Learmonth: Yep.

Mike Kozak: Great. So the two questions from me. First one, sustaining capital for this year, it looks like it increased from $27 million to $43 million, and you did a good job of explaining where that money's going. I didn't flag any change to the 2026 all-in sustaining cost guidance that you guys said a couple months ago. I think between $2,100 and $2,300 an ounce. Are you gonna stick with that range or

Speaker #7: And you did a good job of explaining where that money is going . But I didn't I didn't flag any change to the 2026 all in sustaining cost guidance that you guys set a couple months ago .

Speaker #7: I think between 2,120–3,000 hours. Are you going to stick with that range, or...

Mark Learmonth: No. That's clearly fallen between the gap in that we got the board approval a couple of days ago for the extra CapEx, and clearly, I guess, that should flow through into-

Speaker #3: Can I ? Clearly that's clearly that's clearly fallen between the the gap in that we we got the board approval couple of days ago for the extra CapEx .

Speaker #3: And clearly I guess that should flow through into all the costs . Is that correct ? Ross .

Mike Kozak: Okay.

Mark Learmonth: all-in sustaining cost. Is that correct, Ross?

Speaker #1: That's right . And we're just looking at timing . Mike . In terms of when some of that will actually drop . So while the projects have been approved , we're just going to see when when they're scheduled to be paid .

Ross Jerrard: That's right. We're just looking at timing, Mike, in terms of when some of that will actually drop. While the projects have been approved, we've just got to see when they're scheduled to be paid.

Speaker #7: Okay . Got it . Thanks for that . And then my second one , if I back out from your earlier quarterly results from , from , from last year , I should say it looks like Q4 , you recorded a derivative loss of around 4.8 million , I think is all of that related to the put options you guys bought in December , or is there something else going on there ?

Mike Kozak: Okay. Got it. Thanks for that. Then my second one, if I back out from your earlier quarterly results from last year, I should say, it looks like Q4 you recorded a derivative loss of around $4.8 million, I think. Is all of that related to the put options you guys bought in December, or is there something else going on there?

Speaker #1: That's all to do with the puts ?

Ross Jerrard: That's all to do with the puts.

Speaker #3: Got the point of the puts at gold. Even with this current volatility, the gold price is much higher than the put price.

Mike Kozak: Got it.

Mark Learmonth: Let's be clear. The point of the puts, gold, even with this current volatility, the gold price is much higher than the put price. The point of the puts, as I think Ross outlined, just to reinforce the point, is it creates a floor price for the purposes of the Zim banks in terms of putting together the interim funding facility. It is still strategically important to us.

Speaker #3: The point of the puts is I think Ross Ross outlined just to make just to reinforce the point is it creates a floor price for the purposes of the Zim banks in terms of putting together the interim funding facility .

Speaker #3: So it is still strategically important to us.

Speaker #7: Oh , for sure . I just for my own numbers , I want to know what to adjust out for and what to expect in future quarters .

Mike Kozak: Oh, you know, for sure. I just want, for my own numbers.

Mark Learmonth: Yeah

Mike Kozak: I wanna know what to adjust out for and

Mark Learmonth: Yeah

Mike Kozak: What to expect in future quarters. I just wanted some clarity on that. I appreciate it, guys. Thank you.

Speaker #7: I just wanted some clarity on that. I appreciate it, guys. Thank you.

Speaker #3: Thank you Mike .

Mark Learmonth: Thank you, Mike.

Speaker #4: Thank you. We've got our next question from Nick Hinman. Nick, please go ahead.

Operator: Thank you. We've got our next question from Nic Dinham. Nick, please go ahead.

Speaker #3: I everybody

Nic Dinham Limited): Hi, everybody. Usually I'd like to spread around the questions, but the first is for Craig. I think, Craig, it does look encouraging what you're doing. Coming back to Blanket Mine, are the recons between what you're actually getting out of the mine at the moment adhering to what you would have expected from your ore reserve models?

Nick Dinham: Hi, everybody. Usually I'd like to spread around the questions, but the first is for Craig. I think, Craig, it does look encouraging what you're doing. Coming back to Blanket Mine, are the recons between what you're actually getting out of the mine at the moment adhering to what you would have expected from your ore reserve models?

Speaker #8: Usually I'd like to just spread around the questions . The first is for Craig . I think Craig , it does look encouraging what you're doing .

Speaker #8: But coming back to blanket mine is the , the , the recons between what you're actually getting out of the , the mine at the moment , adhering to what you would have expected from your , your reserve models .

Speaker #4: Hi , hi . Hi , Nick . Yes , yes , there are so Q4 was affected by a couple of forced moves that we had to make .

Mark Learmonth: Hi, Nic. Yes, they are. Q4 was affected by a couple of forced moves that we had to make. We could not access the areas as quickly as we would have liked. We were forced into maintaining production out of kind of some lower grade, some medium grade areas. As you all know, in mining, you know, trouble always hits your high-grade areas and people see it. Yes, it's maintaining what we are expecting.

Speaker #4: We could not access the areas as quick as , you know , as quickly as we would have liked . So we were forced into maintaining production out of kind of some lower grade , some medium grade areas .

Speaker #4: As we all know , in mining , you know , trouble always hits your higher grade areas . And people see it . So yes , it's maintaining what we are expecting .

Speaker #8: Okay , excellent . I think the next question is for Ross . We'll set your questions . Ross . It's the usual one .

Nic Dinham Limited): Okay. Excellent. I think the next question is for Ross, or set of questions. Ross, it's the usual one. Have you repaid your facilitation loans to your non-controlling interests? The second question with that. I'll have a few more, but the second question is, with that is how many dividends did you distribute from Blanket? Have you actually get some numbers yet? It wasn't quite clear.

Nick Dinham: Okay. Excellent. I think the next question is for Ross, or set of questions. Ross, it's the usual one. Have you repaid your facilitation loans to your non-controlling interests? The second question with that. I'll have a few more, but the second question is, with that is how many dividends did you distribute from Blanket? Have you actually get some numbers yet? It wasn't quite clear.

Speaker #8: Have you repaid your facilitation loans to your non-controlling interests ? And the second question with that , I'll have a few more , but the second question is with that is how many dividends did you distribute from blanket ?

Speaker #8: Eventually, you get some numbers here. It wasn't quite clear. Yeah, there.

Ross Jerrard: Yeah.

Nic Dinham Limited): the timing of those.

Nick Dinham: the timing of those.

Speaker #1: Nick. So maybe I did it the other way around. So there was $60 million of dividends that were declared in 2025 from Blanket.

Ross Jerrard: Nick, maybe I do it the other way around. There was $60 million of dividends that were declared in 2025 from Blanket. Not all of that equated to actual cash movement. There was an opening balance and the timing of the payments post-period, but there was $60 million and there's a $5 million rollover with $44 million paid during this year. High level, $60 million, but there were some timing differences in terms of the cash flows. Bilboes repaid its facilitation loans in Q4 2025.

Speaker #1: Not all of that equated to actual cash movement. There was an opening balance and the timing of the payments post-period, but it was $60 million.

Speaker #1: And there was a $5 million rollover, with $44 million paid during this year. So, at a high level, that's $60 million. But there were some timing differences in terms of the cash flows.

Speaker #1: Beth's repaid its facilitation loans in Q4 of 2025.

Speaker #3: Just because that's the employee trust .

Nic Dinham Limited): Just because that's the employee trust.

Nick Dinham: Just because that's the employee trust.

Speaker #1: That's employee trust . Sorry . And and NIF is has got about half $1 million left on it to be repaid

Ross Jerrard: That's employee trust. Sorry. NEEF has got about half a million dollars left on it to be repaid.

Speaker #3: Neef . Neef is the is the government beneficial shareholder ? Yeah . yeah .

Nic Dinham Limited): NEEF is the government beneficial shareholder? Yeah.

Nick Dinham: NEEF is the government beneficial shareholder? Yeah.

Ross Jerrard: Yeah.

Speaker #8: Okay . So it's all over for for the from now there'll be securing the their share of the dividends from now on .

Nic Dinham Limited): Okay. It's all over for them. From now on, they'll be securing their share of the dividends from now on.

Nick Dinham: Okay. It's all over for them. From now on, they'll be securing their share of the dividends from now on.

Speaker #1: That's right . Yeah .

Ross Jerrard: That's right. Yeah.

Nic Dinham Limited): One of the questions about the loss on the derivatives that you're recording, obviously, this is a moving piece because you're marking it to a price at the end of the period. Do you have a sense of what that number would be if you were to take today's price? What sort of loss would you be recording?

Speaker #8: In your one of the questions about the, the loss on the derivatives that you're recording—and obviously, this is a moving feast because you're marking it to a price at the end of the period.

Nick Dinham: One of the questions about the loss on the derivatives that you're recording, obviously, this is a moving piece because you're marking it to a price at the end of the period. Do you have a sense of what that number would be if you were to take today's price? What sort of loss would you be recording?

Speaker #8: Do you have a sense of what that number would be if you were to take today's price ? What sort of loss would you be recording ?

Speaker #1: I haven't , haven't looked at it today . And I mean that that range in the actual valuations ranged quite considerably as we do the pricing because it's a it's a delivery of a put option each month for the next three years .

Ross Jerrard: I haven't looked at it today. I mean, that range and the actual valuations range quite considerably as we do the pricing because it's a delivery of a put option each month for the next three years. You know, it's not a prima facie where we under the three and a half, they're all written off on day one. There is a value that goes up. No, I don't have the price for you today, especially after today's call.

Speaker #1: So it's , you know , it's not a prima facie . Well , we under under the three and a half , they were all written off on on day one .

Speaker #1: There is a value that goes up. But no, I don't have the price for you today, especially after today's.

Nic Dinham Limited): No. I thought you might have an idea of sensitivity. The last question is, you've started to accumulate some cash and near cash equivalents, and you've got some deposits being made here.

Nick Dinham: No. I thought you might have an idea of sensitivity. The last question is, you've started to accumulate some cash and near cash equivalents, and you've got some deposits being made here.

Speaker #8: I thought you might have a have an idea of sensitivity . And the last question is you've started to accumulate some cash in your cash equivalents and you've got some some deposits being made here .

Speaker #8: What do you think you need in terms of keeping Blanket solvent and keeping the rest of the business lubricated with cash? How much?

Ross Jerrard: Yeah.

Nic Dinham Limited): What do you think you need in terms of keeping Blanket solvent and keeping the rest of the business lubricated with cash? What do you think is the minimum residual cash that you should have on hand at any one time or cash equivalents on any one time?

Nick Dinham: What do you think you need in terms of keeping Blanket solvent and keeping the rest of the business lubricated with cash? What do you think is the minimum residual cash that you should have on hand at any one time or cash equivalents on any one time?

Speaker #8: What do you think is the minimum residual cash that you should have on hand at any one time ? Or cash equivalents on any one time

Speaker #4: Okay .

Ross Jerrard: Okay. Well, selfishly, from a CFO perspective, I'd rather have a little bit more in the back pocket than normal, but anywhere between $30 to 50 million, I think would be a healthy position, particularly on the projects that are coming through the system. We've got a large amount now. It will be deployed, but I think having that sort of quantum on balance sheet just gives us some protection in terms of where we're going.

Speaker #1: Well , selfishly , from a CFO perspective , I'd rather have a little bit more in the back pocket than normal . But anywhere between 30 to $50 million , I think would be a healthy position , particularly on the on the projects that are coming through the system .

Speaker #1: So, we've got a large amount now—it will be deployed. But I think having that sort of quantum on the balance sheet just gives us some protection in terms of where we're going.

Speaker #3: So do you mean do you mean cash or do you mean liquidity ?

Nic Dinham Limited): Do you mean cash or liquidity? Let's clarify.

Nick Dinham: Do you mean cash or liquidity? Let's clarify.

Speaker #1: Liquidity in terms of facilities. Yeah,

Ross Jerrard: Liquidity in terms of facilities. Yeah.

Speaker #9: Yeah yeah .

Nic Dinham Limited): Yeah.

Nick Dinham: Yeah.

Ross Jerrard: Yeah.

Speaker #8: Okay . And then just on the operational side , there was a discussion about previously about a build up of poor stocks . Now you've run them down again because to meet the requirements at the end of the end of this last period is your strategy still to rebuild those stockpiles ?

Nic Dinham Limited): Okay, just on the operational side, there was a discussion previously about a buildup of ore stocks. Now you've run them down again because to meet the requirements at the end of this last period. Is your strategy still to rebuild those stockpiles?

Nick Dinham: Okay, just on the operational side, there was a discussion previously about a buildup of ore stocks. Now you've run them down again because to meet the requirements at the end of this last period. Is your strategy still to rebuild those stockpiles?

Speaker #8: Yes , yes .

Mark Learmonth: One of the things that we'll be introducing in the middle of the year is a new shift system at Blanket. It'll do two things. First of all, it'll introduce seven-day working at the mine as a standard. That's pretty common now across the mining industry in Zimbabwe. The mine drilling and blasting only currently takes place six days a week. That should result in an extra day of drilling and blasting if we can get the stuff trimmed and hoisted. In the ordinary course of events, that should give rise to an extra 100,000 tons a year. In the short term, we'll be using that to accumulate a stockpile to see us through the hiatus relating to the AC/DC conversion.

Speaker #3: So one of the things that we'll be introducing in the middle of the year is a new shift system at blanket to introduce two .

Speaker #3: It'll do two things . First of all , it'll introduce seven day working at the mine as a as a standard . And that is that's pretty common now across the mining industry .

Speaker #3: And Zimbabwe . And the mine drilling and blasting only currently takes place six days a week . So that should result in an extra an extra day of drilling and blasting .

Speaker #3: If we can get the stuff trammed and hoisted in the ordinary course of events , that should give rise to an extra 100,000 tonnes a year in the short term , we'll be using that to accumulate a stockpile to see us through the the hiatus relating to the AC , DC conversion .

Speaker #3: So currently the central shaft works AC, the central shaft winder works, AC. We will be converting that to DC for safety reasons and also for cost reasons, but that will result in the central shaft not being able to hoist for a period of two to three weeks.

Mark Learmonth: Currently, the Central Shaft winder works AC. We'll be converting that to DC for safety reasons and also for cost reasons. That will result in the Central Shaft not being able to hoist for a period of 2 to 3 weeks. We do need to make sure that we've got a healthy stockpile at the end of the year to see us through that. Very much there is the intention over the course of this year to build stockpiles. Once we're confident that the shift system is working and we've got adequate stockpiles, clearly we'll be looking at what we need to do to address and use the extra production, increase our milling capacity. That's a work in progress.

Speaker #3: So we do need to make sure that we've got a healthy stockpile at the end of the year to see us through that.

Speaker #3: So very much . There is the intention , over the course of this year to build stockpiles , and then once we're confident that the shift system is working and we've got adequate stockpiles , then clearly we'll be looking at what we need to do to address and use the extra production increase .

Mark Learmonth: Once we're confident that the shift system is working and we've got adequate stockpiles, clearly we'll be looking at what we need to do to address and use the extra production, increase our milling capacity. That's a work in progress. At this stage, I can't tell you what the costs of increasing that milling capacity would be and what the effect on OpEx would be.

Speaker #3: Our milling capacity . That's a work in progress . So at this stage , at this stage , I can't tell you what the costs of increasing that milling capacity would be and what the what the effect on opex would be .

Mark Learmonth: At this stage, I can't tell you what the costs of increasing that milling capacity would be and what the effect on OpEx would be.

Nic Dinham Limited): Okay.

Nick Dinham: Okay.

Speaker #3: Let's just focus . Let's just focus on getting the shift system in getting the delivering the ounces , getting and delivering the extra tons , building the stockpile to see us through the AC , DC conversion .

Mark Learmonth: Let's just focus on getting the shift system in, delivering the ounces, getting and delivering the extra tons, building the stockpile to see us through the AC/DC conversion. Then for next year, there will be the hope of the story about how we're going to convert that into increased ounces. It's premature to say that at this stage.

Speaker #3: And then for next year, there will be the—. Hopefully, the story about how we're going to convert that into increased ounces.

Speaker #3: Premature to say that at this stage.

Speaker #8: Okay . Excellent . Thank you . And then the final question for Victor here at the end of this year , this time next year , sorry , at the end of in in 12 months time , you will have spent circa $130 million on , on bulbs .

Nic Dinham Limited): Okay, excellent. Thank you. The final question for Victor here. In 12 months' time, you will have spent circa $150 million on Bilboes. What will you have in place by the end of the period? What is your project gonna look like on the ground?

Nick Dinham: Okay, excellent. Thank you. The final question for Victor here. In 12 months' time, you will have spent circa $150 million on Bilboes. What will you have in place by the end of the period? What is your project gonna look like on the ground?

Speaker #8: What will you have in place by the end of the period? What is your project going to look like on the ground?

Speaker #2: Okay , so thank you , Nick . What we are really doing is placing orders long lead items is what we basically doing .

Victor Gapare: Okay. Thank you, Nick. What we are really doing is placing orders. Long lead items is what we're basically doing most of this year, towards the end of this year. That's really what we'll be doing. We'll probably have some contractors moving in at the end of the year, but really, most of the money we are spending this year is on orders, on the long lead items.

Speaker #2: Most of this year . Towards the end of this year . That's really what we'll be doing . I will probably have some contractors moving in at the end of the year , but really most of the money we are spending this year is it's our on orders on the long lead items .

Speaker #3: That means nothing physically—very little physically to see.

Nic Dinham Limited): That means nothing physically, very little physically to see.

Nick Dinham: That means nothing physically, very little physically to see.

Speaker #2: Yeah, very little to see. The only thing you'll see there are contractors moving in and starting to do some work.

Victor Gapare: Yeah. Very little to see. The only thing you'll see there are contractors moving in and starting to do some work.

Speaker #8: So this will be in the form of prepayments. Then, really bullet—

Nic Dinham Limited): This will be in the form of prepayments then, really, will it?

Nick Dinham: This will be in the form of prepayments then, really, will it?

Speaker #3: Prepayments and deposits. Yeah.

Mark Learmonth: Prepayments and deposits, yeah.

Speaker #9: Yeah .

Victor Gapare: Yeah.

Nic Dinham Limited): Good. Excellent. Thank you very much.

Nick Dinham: Good. Excellent. Thank you very much.

Speaker #8: Excellent. Thank you very much.

Speaker #9: Okay .

Victor Gapare: Okay.

Speaker #4: Thank you. Our next question is from Tasha. Please go ahead.

Operator: Thank you. Our next question is from Tatu Zewanora. Please go ahead.

Speaker #10: Hi . Can you hear me ? Yep . All right . So I just have three questions . The first one , can you explain more about the consortium facility as in which banks in South Africa , you are quoting and what is their level of interest in supporting the company , given the 15% non-resident tax , which resumed this year ?

Tatu Zewanora: Hi, can you hear me?

Mark Learmonth: Yep.

Tatu Zewanora: All right. I just have three questions. The first one, can you explain more about the consortium facility, as in which banks in South Africa you are quoting? What is their level of interest in supporting the company, given the 15% nonresident tax which resumed this year? Could you explain that? That's my first question.

Speaker #10: Could you explain that ? That's my first question .

Speaker #3: The 15% non-resident tax. I mean, Ross, are you able to answer that?

Mark Learmonth: The 15% nonresident tax? I mean, Ross, are you able to answer that?

Speaker #1: No . Well , not not specifically for the banks , but we've got two two South African banks and then the Zimbabwean banks that are participating .

Ross Jerrard: No. Well, not specifically for the banks, but we've got 2 South African banks and then the Zimbabwean banks that are participating. 6 banks that we're talking to for the interim facility. Yes, we've been pleased with the, I guess, the appetite to participate in such a facility with those banks. No, we haven't had any negative connotations or discussions from that perspective. Then our PF facility is the African banks in terms of AFC.

Speaker #1: So half a dozen banks . Are we talking to for the interim facility . And yes , there's we've been pleased with the I guess the appetite to participate in such a facility with those banks .

Speaker #1: So no, we haven't had any negative connotations or discussions from that perspective. And then our ETF facility is, is the African banks in terms of ASC. We'll be talking to a similar positive feedback.

Tatu Zewanora: Ross.

Ross Jerrard: You know, for instance, that we're talking to in a similar positive feedback.

Speaker #10: Okay. And my second question is, PJM companies have reported substantial amounts of their ZIG portion of the export proceeds are being trapped at the ABS.

Tatu Zewanora: Okay. My second question is, PGM companies have reported substantial amounts of their ZIG portion of the export proceeds are being trapped at the RBZ. I think there was complaints from Zimplats and Valterra. I wanted to find out if Caledonia is facing such a problem with their ZIG portion of the export proceeds being trapped at the RBZ.

Speaker #10: I think there were complaints from Zimplats and Valterra, and I wanted to find out if Caledonia is facing such a problem, with their zinc portion of the export proceeds being trapped at RBZ.

Speaker #3: No , absolutely not

Mark Learmonth: No, absolutely not.

Speaker #10: All right then , my final question is , has your outlook changed in terms of the gold prices , which you're expecting for the year , given the geopolitical tensions happening in the Middle East right now ?

Tatu Zewanora: All right. My final question is, has your outlook changed in terms of the gold prices which you're expecting for the year, given the geopolitical tensions happening in the Middle East right now?

Speaker #3: So, are you— is that— do you mean, are we going to adjust our— you're asking if we're going to adjust our production level?

Mark Learmonth: Is that? Do you mean? You're asking if we're gonna adjust our production level? Is that the question?

Speaker #3: Is that what the question?

Speaker #10: Yeah . Considering that , you know , the commodity market has become volatile owing to those geopolitical .

Tatu Zewanora: Yeah. Considering that, you know, the commodity market.

Mark Learmonth: No.

Tatu Zewanora: has become volatile.

Mark Learmonth: No.

Tatu Zewanora: owing to those geopolitical

Speaker #3: No , the , the , the mine plan is pretty much set . I mean , we can't just just arbitrarily increase and reduce production .

Mark Learmonth: No. The mine plan is pretty much set. I mean, we can't just arbitrarily increase and reduce production. The objective is to optimize operating efficiency and keep the mills full. What you could do is you could adjust your cut-off grade. If you thought the gold price was gonna be much higher, you might reduce the cut-off grade, so you can perhaps mine more material that would be less attractive in a low price environment. No, the current gyrations aren't giving us any thoughts about changing our overall approach to the mine plan and our mining schedule.

Speaker #3: The objective is to , to mine to optimize operating , operating efficiency and keep the mills full . What you could do , what you could do is you may , you could adjust your cut off grade .

Speaker #3: So if you thought the gold price was going to be much higher , you might cut the reduce the cut off grade . So you can perhaps mine more material that's less would be less attractive in a low gold price environment .

Speaker #3: But no, the within the current gyrations aren't giving us any thoughts about changing our overall approach to the mine plan and our mining schedule.

Speaker #10: All right . Thank you

Tatu Zewanora: All right. Thank you.

Speaker #4: Thank you for your question . Next question is from Tina . She . Dumas , please go ahead .

Operator: Thank you for your question. Next question is from Tinashe Duma. Please go ahead.

Speaker #11: Can you hear me ?

Tinashe Duma: Can you hear me?

Speaker #9: Yes .

Mark Learmonth: Yes.

Speaker #11: Okay . Next presentation and nice performance as well . Great performance . My question is , how much of this year's performance is genuinely operational ?

Tinashe Duma: Nice presentation and nice performance as well. Great performance. My question is, how much of this year's performance is genuinely operational? I'm talking about the period under review. How much of its performance is genuinely operational and how much is simply gold price leverage? I concur that its production at Blanket was broadly flat, while gold prices surged by circa 40%. From that, I could argue that your earnings were largely price-led rather than execution-led. Can you assure that the business can protect margins and sustain cash generation if the gold price normalizes?

Speaker #11: I'm talking about the year under the period under review. How much of its performance is genuinely operational, and how much is simply gold price leverage?

Speaker #11: I , I , I , I concur that it's production is blanket was broadly flat and well , gold prices surged by 44% .

Speaker #11: And from that I could argue that your earnings were likely price led rather than execution led . So what concrete evidence can you give that the business can protect margins and sustain cash generation ?

Speaker #11: If the gold price normalizes?

Speaker #3: Okay , so what one of the things that should we perhaps didn't make clear enough . You're quite right . In 2025 , a lot of the good performance was driven by the high gold price .

Mark Learmonth: Okay. One of the things we perhaps didn't make clear enough is you're quite right. In 2025, a lot of the good performance was driven by the higher gold price. One of the things that we are doing, and we have seen quite significant increases in costs at Blanket. If you look back over a five-year period, in 2020, Blanket's online cost was $784 an ounce. Last year it was $1,280. People need to understand that Blanket now is a very different mine from what it was in 2020. We're hoisting significantly more material from much deeper. In 2020, we were hoisting all of our material from 750 meters below surface.

Speaker #3: One of the things that we are doing , and we have seen quite significant increases in costs of blankets , if you if you look back over AA5 year period in 2020 , blankets online cost was $784 an ounce .

Speaker #3: Last year, it was 1,280. People need to understand that Blanket now is a very different mine from what it was in 2020.

Speaker #3: We're hoisting significantly more material from much , much , much deeper . In 2020 , we were hoisting most of our all of our material from 750m below surface .

Speaker #3: Now we're hoisting most of our material from 1200 meters below surface . So inevitably , that means that you're going to be using more electricity , even before you start taking account of the incremental need to use electricity for improved ventilation .

Mark Learmonth: Now we're hoisting most of our material from 1,200 meters below surface. Inevitably, that means that you're gonna be using more electricity even before you start taking account of the incremental need to use electricity for improved ventilation. In terms of employees, if you look at the pointy end of the business, so that's the people involved in the mining, the underground tramming, the hoisting, the people involved in the milling. We're actually handling more material, more tons per person now than we were five years ago. But our costs have gone up and that's, you know, if you look at our consumable cost, we're pretty much using less in the way of inputs like grinding media, cyanide, and drill steel.

Speaker #3: And in terms of in terms of employees , if you look at the pointy end of the business . So that's the people involved in the in the mining , the underground tramming , the hoisting , the people involved in the milling were actually handling more material , more tons per person now than we were five years ago .

Speaker #3: But the other but our costs have gone up . And that's , you know , if you look at our if you look at our consumable cost , we're pretty much using less in the way of inputs like grinding media cyanide drill steels .

Speaker #3: We're using fewer kilos of that per tonne mill . But every year , year on year , we've seen our costs such as the costs of steel balls , which we use in the in the steel , in the ball mills .

Mark Learmonth: We're using fewer kilos of that per ton milled, but every year on year, we've seen our costs such as the costs of steel balls, which we use in the ball mills. They've gone up on average 10% per annum over each of the last five years. The cost profile has gone up. What we're doing now is we're focused on trying to reduce dollar costs. In particular, the first three initiatives are targeted at electricity. The 132 kV line, the AC/DC conversion, they are expected to give rise to significant cost reductions over the course of the coming three years. In addition to that, we're trying to use electricity more intelligently.

Speaker #3: They've gone up on average 10% per annum over each of the last five years . So the cost the cost profile has gone up .

Speaker #3: What we're doing now is we're focused on trying to reduce dollar costs in particular , the first three initiatives are targeted at electricity .

Speaker #3: So the 132 kV line , the AC , DC conversion , they will they are expected to give rise to significant cost reductions over the course of the coming three years .

Mark Learmonth: The 132 kV line, the AC/DC conversion, they are expected to give rise to significant cost reductions over the course of the coming three years. In addition to that, we're trying to use electricity more intelligently.

Speaker #3: In addition to that, we're using electricity more intelligently. So we're trying to reduce our overall power consumption by just being clever, and more clever, about how we use electricity.

Mark Learmonth: We're trying to reduce our overall power consumption by just being clever, more clever about the way we use electricity. The shift system that I referred to earlier on has got two aims. The first is to reduce worker fatigue by reducing the overtime. A reduced overtime will clearly then reduce some of our labor costs because overtime is clearly the premium rate. The other thing, a lot of those cost reductions I expect may well be given away in terms of further increases in costs that we know we're gonna experience over the next three years or so, particularly in terms of providing better quality housing for the workers.

Speaker #3: The shift system that I referred to earlier on has got two aims. The first is to reduce worker fatigue by reducing the overtime and reduced overtime.

Speaker #3: We'll clearly . Then reduce the . Some of our labor costs because overtime is clearly the premium rate . But the other thing a lot of those cost reductions , I expect may well be given , given away in terms of further increases in costs that we know we're going to experience over the next three years or so , particularly in terms of providing better , better quality housing for the for the workers .

Mark Learmonth: The other thing, a lot of those cost reductions I expect may well be given away in terms of further increases in costs that we know we're gonna experience over the next three years or so, particularly in terms of providing better quality housing for the workers.

Speaker #3: And so the only way I can see that we can get sustainably reduced costs at Blanket is to increase production . So as I've mentioned , we are we would expect as a result of the shift system that introducing seven day week working weeks instead of six day instead of six day working weeks is to harvest more tonnes , which should give give rise to more ounces , which should mean that our costs are spread over , you know , over more ounces and therefore get the cost down .

Mark Learmonth: The only way I can see that we can get sustainably reduced costs at Blanket is to increase production. As I've mentioned, we would expect as a result of the shift system that introducing seven-day week working weeks instead of six-day working weeks is to harvest more tons, which should give rise to more ounces, which should mean that our costs are spread over, you know, over more ounces, and that will get the cost down. That's not gonna happen quickly, but over the next three years, I would be hopeful that as a result of the combination of those packages, we can begin to get the cost down.

Speaker #3: So that's not going to happen quickly. But over the next three years, I would be hopeful that as a result of the combination of those packages, we can begin to get the cost down.

Mark Learmonth: That's not gonna happen quickly, but over the next three years, I would be hopeful that as a result of the combination of those packages, we can begin to get the cost down. Don't for a minute think that Blanket is gonna go back to being a low-cost producer at $784 an ounce. It's not. The only way for a deep level, relatively low-grade mine like Blanket to be sustainable. Blanket's 126 years old this year, and we want to keep it running.

Speaker #3: But don't for a minute think that Blanket is going to go back to being a low-cost producer at $784 an ounce. It's not the only way for a deep level.

Mark Learmonth: Don't for a minute think that Blanket is gonna go back to being a low-cost producer at $784 an ounce. It's not. The only way for a deep level, relatively low-grade mine like Blanket to be sustainable. Blanket's 126 years old this year, and we want to keep it running. As you've heard from Craig, there's plenty of potential to extend Blanket's mine life by going deeper. The only way we can do that is continuing to invest to improve resilience and lock in economies. That's a long answer to a fairly short question, which I hope answers your question. If-

Speaker #3: Relatively low-grade mine like Blanket to be sustainable, and Blanket is 120, 620 years old this year. And we want to keep it running.

Speaker #3: You've heard from Craig . There's plenty of potential to extend blankets like mine . Life by going deeper and . The only way we can do that is continuing to invest to improve resilience and lock in economies .

Mark Learmonth: As you've heard from Craig, there's plenty of potential to extend Blanket's mine life by going deeper. The only way we can do that is continuing to invest to improve resilience and lock in economies. That's a long answer to a fairly short question, which I hope answers your question. If-

Speaker #3: So that's a long answer to a fairly short question Which I hope addresses , which I hope answers your question .

Speaker #11: Yes , yes . Thank you . Thank you . I've been answered . I'm from Texas , by the way . Thank you .

Tinashe Duma: Yes. Thank you. That has been answered. I'm Tinashe from Equitix, by the way. Thank you. That is enough from me.

Speaker #11: There is enough for me .

Speaker #9: Okay ?

Mark Learmonth: Okay. Let's be clear. The phrase I used is escaping forwards. From any, pretty much any mine in Zimbabwe which is facing, you know, rising cost pressures, the only way to counter that is to escape forwards through growth. That's what we're looking for over the course of the next three years. Okay. Any further questions?

Speaker #3: Okay . Let's be clear . The phrase I use is escaping forwards for any pretty much any mine in Zimbabwe , which is facing , you know , rising cost pressures .

Speaker #3: The only the only way to counter that is to escape forwards through growth . And that's that's what we're looking for over the course of the next three years Okay .

Speaker #3: Any further questions ?

Speaker #4: Very much . That concludes the the questions that we have at the moment . So , Mark , I'd like to give the floor back to yourself for any closing remarks .

Operator: Thanks very much. That concludes the questions that we have at the moment. Mark, I'd like to give the floor back to yourself for any closing remarks.

Speaker #3: Okay . Well , clearly it was it was a good year financially , as we've identified , largely driven by the the gold price .

Mark Learmonth: Okay. Well, clearly it was a good year financially as we've identified, largely driven by the gold price. We're focused very much on Bilboes turning that to account. That will be a game changer, not just for Caledonia, but also for Zimbabwe. We're not neglecting Blanket. As I think the comments at the end of that Q&A session made very clear, we are focused on using this high gold price to invest in Blanket, both to try and tickle up the gold production, but also to lock in resilience and efficiencies. That's gonna be a three-year exercise. It's not gonna be a quick turnaround, but we'll hopefully clearly keep stakeholders informed as we move along.

Speaker #3: We're focused very much on Bilbo's turning back to account . That will be a game changer , not just for Caledonia , but also for for Zimbabwe .

Speaker #3: But we're not neglecting blankets . I think comments at the that Q&A session made very clear we are focused on using this high gold price to invest in blanket , both to to to try and tickle up the gold production , but also to lock in resilience and efficiencies .

Mark Learmonth: That's gonna be a three-year exercise. It's not gonna be a quick turnaround, but we'll hopefully clearly keep stakeholders informed as we move along. Thank you very much for your attendance, and we'll be putting out our Q1 results in about six weeks' time in the middle of May. Okay? Thank you all very much.

Speaker #3: So that's going to be a three year exercise . It's not going to be a quick turnaround , but we're hopefully we'll clearly we'll keep keep stakeholders informed as we move along .

Speaker #3: So, thank you very much for your attendance. And we'll be putting out our Q1 results in about six weeks' time, in the middle of May.

Mark Learmonth: Thank you very much for your attendance, and we'll be putting out our Q1 results in about six weeks' time in the middle of May. Okay? Thank you all very much.

Tinashe Duma: Goodbye.

Operator: Goodbye.

Full Year 2025 Caledonia Mining Corp PLC Earnings Call

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