Q2 2026 First Quantum Minerals Ltd Earnings Call

July 29, 2026

Speaker #1: Good morning, and welcome, everyone, to the FIRST QUANTUM MINERALS second quarter 2026 results conference call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise.

Operator: Good morning and welcome everyone to the First Quantum Minerals Q2 2026 results conference call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. At this time, I would like to turn the conference over to Bonita To, Director, Investor Relations and Capital Markets. Please go ahead.

Operator: Good morning and welcome everyone to the First Quantum Minerals Second Quarter 2026 Results Conference call. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. At this time, I would like to turn the conference over to Bonita To, Director, Investor Relations and Capital Markets. Please go ahead.

Speaker #1: After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press the star key followed by the number 1 on your telephone keypad.

Speaker #1: If you would like to withdraw your question, press star 1 again. At this time, I would like to turn the conference over to Bonita To, Director, Investor Relations, and Capital Markets.

Speaker #1: Please go ahead.

Speaker #2: Thank you, Operator, and thank you, everyone, for joining us today to discuss our second quarter results. During the call, we will be making forward-looking statements and, as such, I encourage you to read the cautionary notes that accompany this presentation, our MDNA, and the related news release.

Bonita To: Thank you operator, and thank you everyone for joining us today to discuss our Q2 results. During the call, we will be making forward-looking statements, and as such, I encourage you to read the cautionary notes that accompany this presentation, our MD&A, and the related news release. As a reminder, the presentation is available on our website and that all dollar references are in US dollars unless otherwise noted. On today's call are Tristan Pascall, our Chief Executive Officer, Ryan MacWilliam, our Chief Financial Officer, and Rudi Badenhorst, our Chief Operating Officer. With that, I will turn the call over to Tristan for opening remarks.

Speaker #2: As a reminder, the presentation is available on our website and at all dollar references are in US dollars unless otherwise noted. On today's call, our Tristan Pascall, our Chief Executive Officer, Ryan MacWilliam, our Chief Financial Officer, and Rudy Badenhorst, our Chief Operating Officer.

Speaker #2: And with that, I will turn the call over to Tristan for opening remarks.

Speaker #3: Thank you, Bonita. And thank you, everybody, for joining us on the call today. It's been a very busy half of the first half of the year for FIRST QUANTUM, and in the broader markets.

Tristan Pascall: Thank you, Bonita, and thank you everybody for joining us on the call today. It's been a very busy H1 of the year for First Quantum and in the broader markets, so I'm pleased to have this opportunity to discuss these updates alongside our Q2 results. During the Q2, we continued to deliver steady operations, and it was pleasing that the S3 circuit at Kansanshi continued to operate above expectations, which Rudi will discuss later in the call. We remain well-positioned for further production in the H2 of the year, with continued solid performance from S3, the bottlenecking work at Sentinel, and the processing of stockpile ore at Cobre Panamá. With our hedging program concluded, as Ryan will discuss later, we are once again fully exposed to spot copper prices.

Speaker #3: So I'm pleased to have this opportunity to discuss these updates alongside our second quarter results. During the second quarter, we continue to deliver steady operations and it was pleasing that the S3 circuit consanguine continued to operate above expectations.

Speaker #3: Which Rudy will discuss later in the call. We remain well-positioned for firmer production in the second half of the year, with continued solid performance from S3.

Speaker #3: The bottom there can work at Sentinel, and the processing of stockpiled ore at Cobre Panama. With our hedging program concluded, as Ryan will discuss later, we are once again fully exposed to spot copper prices.

Speaker #3: Alongside stronger production, this will position the company for improved free cash flow generation at current copper prices. We remain well-positioned in terms of our cash flow, liquidity, and balance sheet to cope with ongoing market volatility.

Tristan Pascall: Alongside stronger production, this will position the company for improved free cash flow generation at current copper prices. We remain well-positioned in terms of our cash flow, liquidity, and balance sheet to cope with ongoing market volatility, even as we continue our focus on cost management across the business. At Cobre Panamá, we continued work on the stockpile processing program during the quarter, with an acute focus on safety, equipment integrity, and operational stability. This measured approach allowed for the successful re-commissioning of one of the site's 3 milling trains, train 3, in May, and the production of first concentrate in June, which is earlier than our Q3 target. I'm very pleased with this performance, and I would like to thank the team on site, including the approximate 1,000 skilled Panamanians who have rejoined or newly joined Cobre Panamá.

Speaker #3: Even as we continue our focus on cost management across the business. At Cobra Panama, we continue work on the quarter. With an acute focus on safety, equipment integrity, and operational stability.

Speaker #3: This measured approach allowed for the successful recommissioning of one of the site's 3 million trains, Train 3, in May, and the production of FIRST CONCENTRATE in June, which is earlier than our third quarter target.

Speaker #3: I'm very pleased with this performance, and I would like to thank the team at site, including the approximate 1,000 skilled Panamanians who have rejoined or newly joined Cobra Panama.

Tristan Pascall: This achievement reflects their hard work and the effectiveness of the Preservation and Safe Management program maintained over the past several years that enabled a high level of regiment and reliability across the operation. Following the successful re-commissioning, the focus was on operational stabilization, and I'm pleased to report that train 3 achieved stable operations, and a total of 2.1 million tonnes of ore was processed through the Q2 to produce approximately 3,200 tonnes of copper in concentrate. Stockpile processing through train 3 has performed well with both mechanical and operational performance tracking within expectations. Cobre Panamá now has approximately 3,000 people on site, and we have restarted procurement amongst local Panamanian suppliers. Our activities to date continue to provide confidence in the team and in the asset.

Speaker #3: This achievement reflects their hard work and the effectiveness of the preservation and safe management program, maintained over the past several years, that enabled a high level of readiness and reliability across the operation.

Speaker #3: Following the successful recommissioning, the focus was on operational stabilization. And I'm pleased to report that Train 3 achieved stable operations and a total of 2.1 million tons of ore was processed through the second quarter, to produce approximately 3,200 tons of copper in concentrate.

Speaker #3: Stockpile processing through Train 3 has performed well, with both mechanical and operational performance tracking within expectations. Cobra Panama now has approximately 3,000 people on site, and we have restarted procurement amongst local Panamanian suppliers.

Speaker #3: Our activity to date continued to provide confidence in the team and in the asset. Environmental stewardship remains a core priority, and the stockpile processing will mitigate environmental and operational risks associated with a prolonged on-site storage of mineralized material.

Tristan Pascall: Environmental stewardship remains a core priority, and the stockpile processing will mitigate environmental and operational risks associated with a prolonged on-site storage of mineralized material. During Q2, the remaining milling train number 2, along with the regrind and column areas, were undergoing inspection, repairs, and preventative maintenance to support the next phase of the stockpile processing program. So far, indications are that the extent of the repairs are similar to train 3 and the other concentrate column areas, respectively. Subsequent to the quarter end, processing was successfully swapped over from milling train 3 to milling train 2 as part of a maintenance cycling strategy. The power station and port continue to operate well, and we expect our first concentrate shipment in August. Concentrate grades will be lower while we continue inspection, repairs, and preventative maintenance of the regrind and columns area of the Cobre Panamá process plant.

Speaker #3: During quarter 2, the remaining million trains, Train 1 and 2, along with the regrind and column areas, were undergoing inspection, repairs, and preventative maintenance to support the next phase of the stockpile processing program.

Speaker #3: So far, indications are that the extent of the repairs are similar to Train 3, and the other concentrate common areas, respectively. Subsequent to the quarter end, processing was successfully swapped over from million Train 3 to million Train 2 as part of the maintenance cycling strategy.

Speaker #3: The power station and port continue to operate well, and we expect our FIRST CONCENTRATE shipment in August. Concentrate grades will be lower while we continue inspection, repairs, and preventative maintenance of the regrind and columns area of the Cobra Panama process plant.

Speaker #3: Due to the global shortage, there is strong demand for the concentrate, and additionally, at the current processing rates and spot copper prices, we expect free cash flow from Cobra Panama to be neutral to positive.

Tristan Pascall: Due to the global shortage, there is strong demand for the concentrate. In addition, at the current processing rates and spot copper prices, we expect free cash flow from Cobre Panamá to be neutral to positive. Moving forward, we will remain focused on maintaining this conservative and measured approach in order to ensure the highest quality operations. With an estimated 38 million tonnes of mineralized ore containing approximately 70,000 tonnes of recoverable copper, we anticipate there is sufficient stockpile to support around 12 months of processing at current rates. Also in the quarter, the comprehensive audit of Cobre Panamá was published and is now available to the public on the Minera Panamá website. The audit process spanned approximately eight months and involved the preparation and submission of thousands of documents, participation in interviews, and support for numerous site inspections and field visits.

Speaker #3: Moving forward, we will remain focused on maintaining this conservative and measured approach in order to ensure the highest quality operations. With an estimated 38 million tons of mineralized ore containing approximately 70,000 tons of recoverable copper, we anticipate that we have sufficient stockpile to support around 12 months of processing at current rates.

Speaker #3: Also in the quarter, the comprehensive audits of Cobra Panama was published and is now available to the public on the Miranda Monte website. The audit process spanned approximately 8 months and involved the preparation and submission of thousands of documents.

Speaker #3: Participation in interviews and support from numerous site inspections and field visits. This was undoubtedly the most extensive and rigorous independent review ever undertaken at Cobra Panama, and one of the most thorough independent audits of any mine globally.

Tristan Pascall: This was undoubtedly the most extensive and rigorous independent review ever undertaken at Cobre Panamá and one of the most thorough independent audits of any mine globally. The audit concluded that Cobre Panamá is a professionally managed and technically sound operation with a high degree of regulatory compliance, achieving an overall score of 87.73 out of 100. Importantly, the report found that the project's core systems, infrastructure, controls, and management processes are functioning effectively. As with any comprehensive review of this nature, the audit also identified areas where further improvements can be made. 361 out of 370 commitments were fulfilled, with seven areas being in partial compliance, with no areas fundamentally absent. Improvements required in these areas are related primarily to long-term reforestation, biodiversity, and restoration programs that are correctable and not considered acute environmental incidents.

Speaker #3: The audit concluded that Cobra Panama is a professionally managed and technically sound operation with a high degree of regulatory compliance. Achieving an overall score of 87.73 out of 100.

Speaker #3: Importantly, the report found that the project's core systems, infrastructure, controls, and management processes are functioning effectively. As with any comprehensive review of this nature, the audit also identified areas where further improvements can be made.

Speaker #3: 361 out of 370 commitments were fulfilled, with 7 areas being in partial compliance, but with no areas fundamentally absent. Improvements required in these areas are related primarily to long-term reforestation, biodiversity, and restoration programs that are correctable and not considered acute environmental incidents.

Speaker #3: We welcome these findings as continuous improvement has always been a fundamental part of how we operate, and we view the recommendations as a valuable opportunity to further strengthen and already robust operation.

Tristan Pascall: We welcome these findings, as continuous improvement has always been a fundamental part of how we operate, and we view the recommendations as a valuable opportunity to further strengthen an already robust operation. The audit is now being reviewed by a high-level ministerial commission led by the Ministers of Commerce and Industry, Economy and Finance, and the Environment. As communicated publicly by government, the ministerial commission is undertaking a comprehensive technical evaluation of the audit findings and will provide an informed recommendation on the future of the mine to the president in due course. In the meantime, we remain focused on the safe execution of the stockpile processing program, and we remain ready to engage constructively with the government of Panama to achieve a fair and durable resolution for the mine. Additionally, we continue outreach efforts through workforce and community initiatives in Panama.

Speaker #3: The audit has now been reviewed by a high-level ministerial commission led by the Ministers of Commerce and Industries, Economy and Finance, and the Environment.

Speaker #3: As communicated publicly by government, the ministerial commission was undertaking a comprehensive technical evaluation of the audit findings, and will provide an informed recommendation on the future of the mine to the President in due course.

Speaker #3: In the meantime, we remain focused on the safe execution of the stockpile processing program, and we remain ready to engage constructively with the Government of Panama to achieve a fair and durable resolution for the mine.

Speaker #3: Additionally, we continue to outreach efforts and workforce and community initiatives in Panama. It is pleasing to share that our recruitment initiatives to support the hiring of staff for preservation activities achieved over 50% participation from communities in the mines' local area of influence, and the participation rate from women was approximately 17%.

Tristan Pascall: It is pleasing to share that our recruitment initiatives to support the hiring of staff for preservation activities achieved over 50% participation from communities in the mine's local area of influence, and the participation rate from women was approximately 17%. Our educational program added over 500 students during the quarter and now supports over 4,000 students in Panama, while our entrepreneurial program graduated over 700 individuals during the same period, taking the total to over 1,000 graduates to date. We have also launched a new environmental education initiative, which is expected to reach more than 50,000 students in school across Panama. Moving over to Zambia, I want to thank the team at Kansanshi for co-hosting the 2026 International Mine Rescue Competition. This was a significant achievement, not only for Kansanshi and First Quantum, but also for Zambia, as it marked the first time an African nation has hosted this event.

Speaker #3: Our educational program added over 500 students during the quarter, and now supports over 4,000 students in Panama. While our entrepreneurial program graduated over 700 individuals during the same period, taking the total to over 1,000 graduates to date.

Speaker #3: We have also launched a new environmental education initiative which is expected to reach more than 50,000 students in school across Panama. Moving over to Zambia, I want to thank the team at Consanzi for co-hosting the 2026 International Mine Rescue Competition.

Speaker #3: This was a significant achievement not only for Consanzi and FIRST QUANTUM, but also for Zambia, as it marked the first time an African nation has hosted this event.

Tristan Pascall: The competition brought together 22 teams from 10 countries across four continents and tested participants under real-world emergency response scenarios. We are proud to have played a role in bringing the global mining community together in Zambia towards improving safety performance across our industry. Continuing in Zambia, I am proud to share that 2026 marks a significant milestone year for First Quantum as we celebrate 30 years of partnership, investment, and shared growth with the people of Zambia. Over the past three decades, we have invested not only in world-class mining operations, but also in the people, communities, local suppliers, and local businesses, helping to create lasting value and opportunities across the country. Our success is closely linked to the success of the communities in which we operate, and that belief continues to guide our approach today.

Speaker #3: The competition brought together 22 teams from 10 countries across 4 continents, and tested participants under real-world emergency response scenarios. We are proud to have played a role in bringing the global mining community together in Zambia, towards improving safety performance across our industry.

Speaker #3: Continuing in Zambia, I am proud to share that 2026 marks a significant milestone year for FIRST QUANTUM, as we celebrate 30 years of partnership, investment, and shared growth with the people of Zambia.

Speaker #3: Over the past 3 decades, we have invested not only in world-class mining operations, but also in the people, communities, local suppliers, and local businesses, helping to create lasting value and opportunities across the country.

Speaker #3: Our success is closely linked to the success of the communities in which we operate, and that belief continues to guide our approach today. The recent example of the handover of infrastructure and learning materials valued at more than 12.9 million quatja to several schools in Sulwezi helped create better learning environments and opportunities for young people.

Tristan Pascall: A recent example is the handover of infrastructure and learning materials valued at more than ZMW 12.9 million to several schools in Solwezi, helping create better learning environments and opportunities for young people. Ultimately, it is the talent, dedication, and ambition of Zambians that power our operations and position us for the future. As we celebrate our 30-year milestone, we remain committed to operating safely, responsibly, and transparently and continue to be a long-term partner in Zambia's development. Thank you. I will now pass the call to Rudi to discuss our operational results.

Speaker #3: Ultimately, it is the talent, dedication, and ambition of Zambians that power our operations and position us for the future. As we celebrate our 30-year milestone, we remain committed to operating safely, responsibly, and transparently, and continue to be a long-term partner in Zambia's development.

Speaker #3: Thank you, and I will now pass the call to Rudy to discuss our operational results.

Speaker #1: Thank you, Tristan. Higher production at Sentinel and the commencement of stockpile ore processing at Cobra Panama led to a 4% quarter-over-quarter increase for total copper production of just over 100,000 tons in the second quarter.

Rudi Badenhorst: Thank you, Tristan. Higher production at Sentinel and the commencement of stockpile ore processing at Cobre Panama led to a 4% quarter-over-quarter increase for total copper production of just over 100,000 tonnes in Q2. Copper sales totaled 93,300 tonnes, approximately 7,000 tonnes below production due to timing differences between sales and production. At Kansanshi, copper production in the quarter was 44,000 tonnes, down approximately 1,000 tonnes from the previous quarter due to lower throughput as the S3 and mixed circuits underwent planned maintenance during the period. The S3 concentrator, however, delivered the highest monthly throughput in May since commissioning and operated above design capacity throughout Q2. This performance was driven by increased operating time, strong utilization, and milling rates, which supported the processing of long-term, lower-grade stockpiles.

Speaker #1: Copper sales totaled 93,300 tons, approximately 7,000 tons below production, due to timing differences between sales and production. At Kansanshi, copper production in the quarter was 44,000 tons, down approximately 1,000 tons from the previous quarter due to lower throughput, as the S3 and mixed circuits underwent plant maintenance during the period.

Speaker #1: The S3 concentrator, however, delivered the highest monthly throughput in May since commissioning, and operated above design capacity throughout the second quarter. This performance was driven by increased operating time, strong utilization and milling rates, which supported the processing of long-term lower-grade stockpiles.

Speaker #1: S3 continues to take a high proportion of feed from surface stockpiles which are tarnished and lower-grade than freshly mined ore. Copper production guidance for 2026 remains unchanged at 175 to 205,000 tons, whilst gold production guidance is 110 to 120,000 ounces.

Rudi Badenhorst: S3 continues to take a high proportion of feed from surface stockpiles, which are tarnished and lower grade than freshly mined ore. Copper production guidance for 2026 remains unchanged at 175 to 205,000 tonnes, whilst gold production guidance is 110 to 120,000 ounces. This will be supported by continued strong performance at S3. Additionally, while ore will continue to be predominantly sourced from low-grade stockpiles, fresh ore from the southeast dome that is harder and higher in grade will be gradually introduced in the S3 circuit during H2 of this year. Also at Kansanshi, we opportunistically sold surplus sulfuric acid during the quarter. Through proactive management of higher acid-consuming oxide ore and acid inventories, we generated surplus acid available for third-party sales totaling approximately 36,000 tonnes and expect sales to continue into Q3.

Speaker #1: This will be supported by continued strong performance at S3, additionally while ore will continue to be predominantly sourced from low-grade stockpiles; fresh ore from the southeast dome that is harder and higher in grade will be gradually introduced in the S3 circuit during the second half of this year.

Speaker #1: Also, at Consanzi, we opportunistically sold surplus sulfuric acid during the quarter. Through proactive management of higher acid-consuming oxide ore, and acid inventories, we generated surplus acid available for third-party sales totaling approximately 36,000 tons, an expected sales to continue into the third quarter.

Speaker #1: At Sentinel, copper production was 50,000 tons, an increase of 5,000 tons from the previous quarter. This increase was attributed to higher grades and recoveries, offset by lower throughput.

Rudi Badenhorst: At Sentinel, copper production was 50,000 tonnes, an increase of 5,000 tonnes from the previous quarter. This increase was attributed to higher grades and recoveries offset by lower throughput, a result of the planned five-day total plant shutdown at Trident that was completed in June. We continue to effectively manage through bolt fatigue with ball mill 2, and expect to resolve the issue permanently during the annual plant maintenance downtime in 2027, with a replacement of a section of the third can and discharge end. Production guidance for 2026 remains unchanged at 190,000 to 220,000 tons of copper. Production is weighted towards the H2 of the year, with improving mill throughput and an improvement in grades as mining progresses within stage 2 of the pit. Enterprise produced just over 11,000 tonnes of nickel, a 9% decrease from the previous quarter, mainly due to the aforementioned total plant shutdown.

Speaker #1: A result of the planned 5-day total plant shutdown at Trident that was completed in June. We continue to effectively manage through bolt fatigue with bore mill 2, and expect to resolve the issue permanently during the annual planned maintenance downtime in 2027, with a replacement of a section of the third can and discharge end.

Speaker #1: Production guidance for 2026 remains unchanged at 190 to 220,000 tons of copper. Production is awaited towards the second half of the year, with improving mole throughput and an improvement in grades as mining progresses within stage 2 of the pit.

Speaker #1: As expected, we produced just over 11,000 tons of nickel, a 9% decrease from the previous quarter, mainly due to the aforementioned total plant shutdown. Production guidance for 2026 is maintained at 30,000 to 40,000 tons of contained nickel.

Rudi Badenhorst: Production guidance for 2026 is maintained at 30,000 to 40,000 tonnes of contained nickel. We are continuing to focus on improving ore quality and grade control through ongoing RC drilling while also refining mining practices, including reducing the ore bench heights to minimize dilution and enhance recovery. Ore grades at Enterprise are expected to be lower in the Q3, but in line with the mine plan. The development of permanent ramps is underway to improve mining productivity, and the pit dewatering stage tank pad is scheduled to be handed over to our projects team in early July, after which mining activities will focus on increasing the ore footprint through lowering current cutbacks, sump development, and south wall mining in preparation for the oncoming rainy season.

Speaker #1: We are continuing to focus on improving ore quality and grade control through ongoing RC drilling, while also refining mining practices, including reducing the ore bench heights to minimize dilution and enhance recovery.

Speaker #1: Ore grades at Enterprise are expected to be lower in the third quarter, but in line with the mine plan. The development of permanent ramps is underway to improve mining productivity, and the pit dewatering stage tank pad is scheduled to be handed over to our projects team in early July. After that, mining activities will focus on increasing the ore footprint through lowering current cutbacks, some development, and south wall mining in preparation for the oncoming rainy season.

Speaker #1: Lastly, looking at GWELB, copper production was 2,000 tons, and gold production was 60,300 ounces, which includes output from reprocessed tailings through the CIL plant.

Rudi Badenhorst: Lastly, looking at Guelb, copper production was 2,000 tonnes and gold production was 6,300 ounces, which includes output from reprocessed tailings through the CIL plant. Production guidance for 2026 remains approximately 7,000 tonnes of copper and 30,000 to 40,000 ounces of gold. The operation will continue processing sulfide copper ore, plus gold-containing tailings through the CIL plant, with intermittent stockpiled oxide gold ore treatment to support the most favorable transition to full oxide ore gold production. In summary, as Tristan noted, we delivered consistent operations in the Q2, and we are set up well to deliver stronger copper production in the H2 of the year. Thank you, and with that, I will turn the call over to Ryan for the financial review.

Speaker #1: Production guidance for 2026 remains approximately 7,000 tons of copper, and 30 to 40,000 ounces of gold. The operation will continue processing sulfide copper ore plus gold-containing tailings through the CIL plant, with intermittent stockpiled oxide gold ore treatment to support the most favorable transition to full oxide ore gold production.

Speaker #1: In summary, as Tristan noted, we delivered consistent operations in the second quarter, and we are set up well to deliver stronger copper production in the second half of the year.

Speaker #1: Thank you, and with that, I will turn the call over to Ryan for the financial review.

Speaker #2: Thank you, Rudi. The copper price remained strong in the second quarter, trading between $5.50 and $6.40 per pound. This was due to tariff-related stockpiling in the US, a tight copper concentrate market, and sulfuric acid supply concerns.

Ryan MacWilliam: Thank you, Rudi. The copper price remained strong in the Q2, trading between $5.50 and $6.40 per pound. This was due to tariff-related stockpiling in the US, a tight copper concentrate market, and sulfuric acid supply concerns. Continued strong demand meant global warehouse inventories declined significantly towards the end of the quarter, with a 62% drop in SHFE deliverable inventories quarter-over-quarter. Turning to our financial performance. Revenue increased by 8% to $1.5 billion, driven by higher copper prices and increased sales. As Rudi noted, we opportunistically sold our surplus sulfuric acid, contributing around $12 million in revenue. EBITDA increased by 23% to $400 million. A stronger revenue more than offset the impact of higher fuel and contracted costs. It is also worth noting that EBITDA was impacted by hedge losses and PNSM costs at Cobre Panamá.

Speaker #2: Continued strong demand meant global warehouse inventories declined significantly towards the end of the quarter, with a 62% drop in shippy deliverable inventories quarter over quarter.

Speaker #2: Turning to our financial performance, revenue increased by 8% to $1.5 billion, driven by higher copper prices and increased sales. As Rudi noted, we opportunistically sold our surplus sulfuric acid, contributing around $12 million in revenue.

Speaker #2: EBITDA increased by 23% to $400 million. A stronger revenue, more than offset the impact of higher fuel and contractor costs. It has also worth noting that EBITDA was impacted by hedge losses and PNSM costs to cover Panama.

Speaker #2: Both headwinds fall away for the second half of the year, with the hedge program now complete, and COBRA Panama's stockpile processing underway, with first shipments expected in August.

Ryan MacWilliam: Both headwinds fall away for H2, with the hedge program now complete and Cobre Panamá stockpile processing underway, with first shipments expected in August. Excluding Cobre Panamá, our copper C1 costs were $0.03 lower quarter-over-quarter, benefiting from improved Zambian production, which was partially offset by higher fuel costs and reduced gold byproduct credits. Including Cobre Panamá, C1 cash costs were $0.03 higher, with a $0.06 impact relating to elevated production costs from stockpile processing. As expected, the increase in fuel prices was a headwind on costs, along with the weakening gold price. Diesel prices through the quarter averaged $1.59 per liter, in contrast to the $0.91 per liter paid in Q1. With the 2 to 3-month lag in fuel deliveries, elevated fuel prices are expected to continue flowing through our cost base in Q3.

Speaker #2: Excluding COBRA Panama, our copper C1 costs were $0.03 lower quarter over quarter, benefiting from improved Zambian production, which was partially offset by higher fuel costs and reduced gold byproduct credits.

Speaker #2: Including COBRA Panama, C1 cash costs were $0.03 higher, with a $0.06 impact relating to elevated production costs from stockpile processing. As expected, the increase in fuel prices was a headwind on costs, along with the weakening gold price.

Speaker #2: Diesel prices through the quarter averaged $1.59 per liter, in contrast to the 91 cents per liter paid in Q1. With a 2 to 3 month lag in fuel deliveries, elevated fuel prices are expected to continue flowing through our cost base in the third quarter.

Speaker #2: While Q2 saw pockets of improved diesel availability and some easing from peak prices, recent developments in Russia and the Middle East have reintroduced volatility in global fuel markets.

Ryan MacWilliam: While Q2 saw pockets of improved diesel availability and some easing from peak prices, recent developments in Russia and the Middle East have reintroduced volatility in global fuel markets. As a result of this unpredictability, we have left our C1 cash cost guidance unchanged. However, as disclosed last quarter, should current fuel, kwacha, and gold prices persist, there is a roughly $0.25 upside risk to our cost guidance. Our capital guidance, which already includes Cobre Panamá's stockpile processing, also remains unchanged. We've incurred $60 million for the Cobre Panamá processing program to date. This is within the $250 million of required spend previously guided to. In the rest of the business, capital spending broadly aligns with expectations at the start of the year. Our hedge program for both copper and gold is now complete.

Speaker #2: As a result of this unpredictability, we have left our C1 cash cost guidance unchanged. However, as disclosed last quarter, should current fuel, currency, and gold prices persist, there is a roughly $0.25 upside risk to our cost guidance.

Speaker #2: Our capital guidance, which already includes COBRA Panama's stockpile processing, also remains unchanged. We've incurred around $60 million for the COBRA Panama processing program to date.

Speaker #2: This is within the $250 million of required spend previously guided to. In the rest of the business, capital spending broadly aligns with expectations at the start of the year.

Speaker #2: Our hedge program for both copper and gold is now complete. We incurred hedge losses of $159 million for copper, and $5 million for gold during the quarter.

Ryan MacWilliam: We incurred hedge losses of $159 million for copper and $5 million for gold during the quarter. This program was put in place to provide greater cash flow certainty through the S3 project delivery period. With strategic hedge book now fully settled, we have no further hedges in place, giving us full exposure to spot copper and gold prices going forward. As Tristan noted, our stronger production expected in H2. With that stronger production, we are well set up for free cash flow generation at current copper prices. On the balance sheet, we were pleased to close out the Cobre Las Cruces and Traylig transactions during the quarter. These sales reflect our disciplined approach to portfolio management and focus on our core strategic priorities. They delivered a gain on disposal of $271 million, with the net proceeds deployed towards short-term debt.

Speaker #2: This program was put in place to provide greater cash flow certainty through the S3 project delivery period. With strategic hedge book now fully settled, we have no further hedges in place, giving us full exposure to spot copper and gold prices going forward.

Speaker #2: As Tristan noted, our stronger production is expected in the second half of the year. With that stronger production, we are well set up for free cash flow generation at current copper prices.

Speaker #2: On the balance sheet, we were pleased to close out the COBRA Last Cruises and Trailee transactions during the quarter. These sales reflect our disciplined approach to portfolio management and focus on our core strategic priorities.

Speaker #2: They delivered a gain on disposal of $271 million with a net proceeds deployed towards short-term debt. Net debt increased by $123 million to $5.4 billion, this reflected planned capex, tax, and interest outflows, partly offset by EBITDA generation and favorable working capital movements.

Ryan MacWilliam: Net debt increased by $123 million to $5.4 billion. This reflected planned CapEx, tax, and interest outflows, partly offset by EBITDA generation and favorable working capital movements. We closed the quarter with a strong liquidity of $2 billion, including $771 million in cash and $1.25 billion of undrawn revolver capacity. Overall, it was a solid financial quarter with strong execution driving resilient margins. We're maintaining a disciplined approach to capital management, keeping balance sheet strength, liquidity, and a continued focus on de-leveraging at the center of how we make decisions. Combined with our full spot copper price exposure, this positions us well to navigate market volatility while continuing to advance our strategic priorities. With that, I'll hand the call back to Tristan.

Speaker #2: We closed the quarter with strong liquidity of about $2 billion, including $771 million in cash and $1.25 billion of undrawn revolver capacity. Overall, it was a solid financial quarter, with strong execution driving resilient margins.

Speaker #2: We're maintaining a disciplined approach to capital management, keeping balance sheet strength, liquidity, and a continued focus on deleveraging at the center of how we make decisions.

Speaker #2: Combined with our full spot copper price exposure, this positions us well to navigate market volatility while continuing to advance our strategic priorities. With that, I'll hand the call back to Tristan.

Speaker #1: Thank you, Ryan. On to our development projects. During the quarter, we were very pleased to publish a technical report for our Lagrange project in Peru.

Tristan Pascall: Thank you, Ryan. On to our development projects. During the quarter, we were very pleased to publish a technical report for our La Granja project in Peru. The report provided an updated mineral resource containing an estimated 23 million tons of copper, 600 million ounces of silver, and 6.7 million ounces of gold, which positions the project as the second-largest greenfield copper resource globally. The report also included geological and metallurgical work that indicates that a significant portion of the arsenic mineralization is structurally controlled and associated with high-grade copper zones. Based on work completed to date, we believe arsenic can be effectively managed by segregation, blending, and through commercial offtake arrangements. As a result, the mine can be developed as a large-scale open-pit operation with a conventional flotation flow sheet. It is still early days for La Granja.

Speaker #1: The report provided an updated mineral resource containing an estimated 23 million tonnes of copper, 600 million ounces of silver, and 6.7 million ounces of gold.

Speaker #1: This positions the project as the second largest greenfield copper resource globally. The report also included geological and metallurgical work that indicates a significant portion of the Arctic mineralization is structurally controlled and associated with higher grade copper.

Speaker #1: Zones. Based on work completed to date, we believe Arctic can be effectively managed by segregation, blending, and through commercial offtake arrangements, and that as a result, the mine can be developed as a large-scale open-pit operation with a conventional flotation flowsheet.

Speaker #1: It is still early days for Lagrange; however, the technical report underscores the project's potential to become a Tier 1 multi-generational mining operation. Our focus is now on advancing the permitting process, and our key priorities include the progression of baseline environmental and social studies, continued stakeholder engagement, and preparation for the detailed environmental impact assessment.

Tristan Pascall: However, the technical report underscores the project's potential to become a tier 1, multi-generational mining operation. Our focus is now on advancing the permitting process, and our key priorities include the progression of baseline environmental and social studies, continued stakeholder engagement, and preparation for the detailed environmental impact assessments. At Taca Taca, we continue to progress work to de-risk the project. This includes the mining ESIA, which is expected later this year following completion of the public consultation process. In parallel, ongoing water supply assessments are evaluating incremental supply opportunities that could provide greater flexibility. We are also finalizing our application under Argentina's RIGI investment incentive regime and intend to submit it once the ESIA approval and required water use concessions have been secured. As I noted earlier, it has been a busy H1 of the year with our operations and development projects. However, our priorities remain very clear.

Speaker #1: That takes us to how we continue to progress work to de-risk the project. This includes the mining ESIA, which is expected later this year, following completion of the public consultation process.

Speaker #1: In parallel, ongoing water supply assessments are evaluating incremental supply opportunities that could provide greater flexibility. We are also finalizing our application under argumenting as rigging investment incentive regime and intend to submit it once the ESIA approval and required water use concessions have been secured.

Speaker #1: As I noted earlier, it has been a busy first half of the year with our operations and development projects. However, our priorities remain very priority is to progress towards the durable resolution at COBRA maintaining safe, lean, and productive performance across our operations.

Tristan Pascall: First and foremost, the priority is to progress towards a durable resolution at Cobre Panamá. Secondly, maintain safe, lean, and productive performance across our operations. Thirdly, strengthening the balance sheet to ensure the company is well-positioned to support future growth in a disciplined manner. With that, operator, I am happy to open the line for questions, please.

Speaker #1: And thirdly, strengthening the balance sheet to ensure the company is well positioned to support future growth in a disciplined manner. With that, operator, I am happy to open the line for questions, please.

Speaker #3: Thank you. We will now begin the question-and-answer session. If you have dialed in or would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue.

Operator: Thank you. We will now begin the question and answer session. If you have dialed in or would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. We ask that you please limit yourself to one question and one follow-up to allow everyone an opportunity to ask a question. We'll take our first question from Orest Wowkodaw at Scotiabank.

Speaker #3: If you would like to withdraw your question, simply press star 1 again. We ask that you please limit yourself to one question and one follow-up to allow everyone an opportunity to ask a question.

Speaker #3: We'll take our first question from Orest Walkada at Scotiabank.

Speaker #4: Hi, good morning. Hoping you could provide us an update on COBRA Panama. And I'm wondering specifically if there's any expectation on when you would expect the government to move in terms of the next steps of their audit review in terms of conclusion moving forward.

Orest Wowkodaw: Hi, good morning. I'm hoping you could provide us an update on Cobre Panamá, and I'm wondering specifically if there's any expectation on when you would expect the government to move in terms of the next steps of their audit review, in terms of conclusion moving forward. Secondly, I'm also curious if you can comment on the media report recently that spoke about Panamá setting up a state mining company that was looking for interest in the mine. Thank you.

Speaker #4: And then, secondly, I'm also curious if you can comment on the media report recently that spoke about Panama setting up a state mining company that was looking for an interest in the mine.

Speaker #4: Thank you.

Tristan Pascall: Hi, Orest. Thanks for the question. Sure. In terms of timing of the audits process and the recommendations coming out of the ministerial commission. Our engagement with the government of Panamá has been focused on the Preservation and Safe Management plans, and more recently on the stockpile processing programs. The ministerial commission that was announced on 14 July, has established a regular schedule of meetings. They've made public statements on their goal to produce results as soon as possible, and that the recommendations around that need to be holistic, need to look through the technical reports and the substantial amount of effort involved in the thousands of pages there, but also associated economic, environmental, and legal implications of the audit reports and around the mine. Orest, we remain ready to engage as the process advances, it will be the government that determines the next steps and timeline.

Speaker #1: Hi, Orest. Thanks for the question. Sure. In terms of timing of the audits process and the recommendations coming out of the ministerial commission, our engagement with the government of Panama has been focused on the preservation and safe management plans and more recently on the stockpile processing programs.

Speaker #1: The ministerial commission that was announced on the 14th of July has established a regular schedule of meetings they've made public statements on their goal to produce results as soon as around that need to be holistic, need to look through the technical report and the substantial amount of effort involved in the thousands of pages there, but also associated economic and environmental and legal implications of the audit report and around the mine.

Speaker #1: Orest, we remain ready to engage as the process advances. And the government, but it will be the government that determines the next steps and timeline.

Tristan Pascall: We don't have a clear timeline as yet regarding the decision-making process, we know that they're very focused on this topic. Now with all the facts in hand from the audit, we think they are moving into a decision-making phase. For us, and while we await next steps from government, our focus is on executing the stockpile processing program safely and responsibly, preserving the environments at the site, working with the communities around, and ensuring the integrity of the assets at Cobre Panamá. In terms of your second question, we saw the article from Reuters. As you know, Orest, we don't comment on media speculation. As I said, the government of Panamá have completed that audit, and they've formed the ministerial commission to review those results and make recommendations on the future of the mine.

Speaker #1: We don't have a clear timeline as yet, regarding the decision-making process, but we know that they're very focused on this topic. And now with all the facts in hand from the audit, we think they are moving into a decision-making phase.

Speaker #1: What for us and while we were waiting next steps from government, our focus is on executing the stockpile processing program safely and responsibly, preserving the environments at the site, working with the communities around it, and ensuring the integrity of the assets at COBRA Panama.

Speaker #1: In terms of your second question, around, yeah, we saw the article from Reuters as you know, Orest, we don't comment on media speculation. As I said, the government of Panama have completed that audit and they've formed the ministerial commission to review those results.

Speaker #1: And make recommendations on the future of the mine. President Molino has been clear that decisions regarding the mine will be communicated by the government once that review is complete, and not before.

Tristan Pascall: President Mulino has been clear that decisions regarding the mine will be communicated by the government once that review is complete, and not before. Until then, I would suggest any updates from unconfirmed sources are just speculation and should be treated as such.

Speaker #1: And until then, yeah, I would suggest any updates from unconfirmed sources are just speculation and should be treated as such.

Speaker #3: We'll take our next question from Richard Garceterina at Barclays.

Operator: We'll take our next question from Richard Garchitorena at Barclays.

Richard Garchitorena: Great. Thanks for taking my question. Just to follow up on Cobre Panamá, I guess, in terms of the final audit, was there anything specific that surprised you? Anything that you weren't expecting that may cause you to change the plan going forward in terms of the prep work that you're doing ahead of a decision from the government?

Speaker #4: Great. Thanks for taking my question. Just to follow up on a COBRA Panama, I guess in terms of the final audit, was there anything specific that surprised you, anything that you weren't expecting that may cause you to sort of change the plan going forward in terms of the prep work that you're doing ahead of a decision from the government?

Speaker #1: Yeah, hi Richard. Yeah, thanks. Look, the audit overall was a very thorough process. We were very satisfied with the level of engagement from SCS, the independent auditor, but also with government as we went through.

Tristan Pascall: Hi, Richard. Thanks. Look, the audit overall was a very thorough process. We were very satisfied with the level of engagement from SCS, the independent auditor, but also with government as we went through a lot of interviews, a lot of site visits. It was extremely comprehensive. I think overall, the mark of the 87.7 out of 100 score, I think reflects a high level of compliance. There was 361 areas of full compliance and then seven areas of partial compliance. I think there are two areas of misallocation, but it's seven areas of partial compliance. The areas that were drawn out, in particular, rehabilitation, biodiversity, look, we were aware of. For example, on reforestation, we were aware that during the period of closure, of suspension of the mine, that we hadn't been able to do that work.

Speaker #1: A lot of interviews, a lot of site visits. It was extremely comprehensive. I think overall, the mark, the 87.7 out of 100 score, I think reflects a high level of compliance.

Speaker #1: There was 361 areas of full compliance. And then seven areas of partial compliance. I think there are two areas of misallocation, but it's seven areas of partial compliance.

Speaker #1: But the areas that were drawn out, in particular rehabilitation and biodiversity—look, we were aware of them. So, for example, on rehabilitation—reforestation, I'm sorry—we were aware that during the period of closure, or suspension of the mine, we hadn't been able to do that work.

Speaker #1: So it's no surprise that some of those reforestation areas have slid backwards. We were at some 54.7% completion of the target, which was over the life of the mine.

Tristan Pascall: It's no surprise that some of those reforestation areas had slid backwards. We were at some 54.7% completion of the target, which was over the life of the mine. We had lost ground because during this closure, we hadn't been spending money on those areas without the lack of clarity. Similarly, on biodiversity, ecosystem conservation, species protection, we're very aware, and we think this provides the opportunity to strengthen what is a very high level of compliance already. What we did see in those non-compliances, there wasn't any broader breakdown in environmental management. There were no acute environmental issues that were of major concern. Instead, really, they identify areas of further work where we need to document further. We're reviewing and identifying those areas, and certainly, we're keen to address those, and ensure that we continue to improve the standards of Cobre Panamá.

Speaker #1: But we had lost ground because during this closure, we hadn't been spending money on those areas without the lack of clarity. Similarly, on biodiversity, ecosystem conservation, species protection, we're very aware.

Speaker #1: And we think this provides the opportunity to strengthen what is already a very high level of compliance. But what we did see in those non-compliances was that there wasn't any broader breakdown in environmental management.

Speaker #1: It wasn't there were no acute environmental issues that were of major concern. Instead, really, they identify areas of further work where they need to document further.

Speaker #1: And we're reviewing and identifying those areas and certainly we're keen to address those and ensure that we continue to improve the standards at COBRA Panama.

Speaker #4: Great, thanks. And on the costs, $60 million incurred in the second quarter, intact for the full-year guidance. Is the cash cost expectation of $4.50, that's still on track, or is there anything that you've seen, maybe scope that you could do better than that?

Richard Garchitorena: Great. Thanks. On the costs, $60 million incurred in Q2, intact for the full-year guidance. Is the cash cost expectation of $4.50, that's still on track? Or is there anything that you've seen, maybe scope that you could do better than that?

Speaker #1: Yeah, thanks, Richard. Ryan, do you want to take that question on costs so far at Panama?

Tristan Pascall: Yeah. Thanks, Richard. Ryan, do you want to take that question on costs so far at Cobre Panamá?

Speaker #5: Yeah, sure. So, Richard, in short, the circa $4.40 C1 costs we have expected at Cobre Panama—we still expect to be in line with that through the balance of the year.

Ryan MacWilliam: Yeah, sure. Richard, in short, the circa $4.40 C1 costs we have expected at Cobre Panamá, we still expect to be in line with that through the balance of the year. I'd say we're on track for guidance, we're on track for costs in Cobre Panamá following the successful ramp-up of the stockpile processing in Q2.

Speaker #5: So, I'd say we're on track for guidance, and we're on track for costs in Panama, following the successful ramp-up of the stockpile in Q2.

Speaker #3: We'll move to our next question from Lawson Winder at Bank of America.

Operator: We'll move to our next question from Lawson Winder at Bank of America.

Speaker #2: Sure. Thank you very much, operator. And hello, Tristan, Rudi, and Ryan. Thank you for today's update. Just on Cobre Panama again, just thinking around timing, what is your latest thinking on how long it would require to ramp up Cobre Panama to run rate once the fiscal framework is in place and all approvals secured?

Lawson Winder: Sure. Thank you very much, operator. Hello, Tristan, Rudi, and Ryan. Thank you for today's update. Just on Cobre Panamá, again, just thinking around timing, what is your latest thinking on how long it would require to ramp up Cobre Panamá to run rate once the fiscal framework is in place and all approvals secured. You noted the workforce at 3,000 people. That's really impressive. How do you expect that ramp up to trend for the balance of the year? I'm just trying to think of what place you might be in at year-end in terms of total employment and that ability to ramp up the mine. Thank you.

Speaker #2: And then you noted the workforce at 3,000 people, but that's really impressive. How do you expect that ramp-up to trend for the balances of the year?

Speaker #2: And I'm just trying to think of what place you might be in at year-end in terms of total employment and that ability to ramp up the mine.

Speaker #2: Thank you.

Speaker #1: Thanks, Lawson. And thanks for the question. The first thing to note is that we're not in that mode yet of a full start, and we're working through the government process.

Tristan Pascall: Thanks, Lawson. Well, thanks for the question. First thing to note is, we're not in that mode yet of a full staff, and we're working through the government process. As I said, we'll wait for government around that timetable. If and when that comes through, in terms of our timeline to full production, the stockpile processing activity now covers most of the areas. It's the mining activity in particular, drill and blast or waste stripping or full fleet mobilization that we're not involved in at this stage. The fleets have been well-maintained during this period of closure. Ultimately, the full restart will depend on our ability to restart mining, both in Botija and in the Colina areas, to catch up with those processing rates. That's really the challenge. That will come back to people, which you point out there.

Speaker #1: As I said, we'll wait for government around that timetable. If and when that comes through, in terms of our timeline to full production, the stockpile processing activity at now covers most of the areas.

Speaker #1: Really, it's mining the mining activity in particular, drill and blast or waste stripping or full fleet mobilization that we're not involved at this stage.

Speaker #1: But FEETS has been well maintained during this period of closure. But ultimately, the full restart will depend on our ability to restart mining both in Batika and in the Kalima area to catch up with those processing rates.

Speaker #1: That's really the challenge. So that will come back to people, which you point out there, onboarding and training the workforce, getting operators and maintenance personnel back.

Tristan Pascall: Onboarding and training the workforce, getting operators and maintenance personnel back. We've been very pleased with how the Panamanians have responded and come back into the workforce. Some 1,000 people already. Well, everybody on a truck right now that's involved in the stockpile processing, as a truck operator, was previously hired at Cobre Panamá, and we're very excited to have those people back and give them, again, meaningful employment in the context of a large unemployment number in Panamá. Some 10% of the country is searching for employment. If the working-age population of Panamá is 2 million, that's 200,000 people that are out there looking for work. I think that gives us an opportunity to bring people back. We will need to get up to some 6,000 people in the event we do move to a full production ramp up.

Speaker #1: We've been very pleased with how the Panamanians have responded and come back into the workforce. Some 1,000 people already. Most of those well, everybody on a truck right now that's involved in the stockpile processing as a truck operator was previously hired at COBRA Panama, and we're very excited to have those people back and give them again meaningful employment in the context of a large unemployment number in Panama, some 10% of the country is searching for unemployment for employment.

Speaker #1: So it's a working age population of Panama's 2 million. That's 200,000 people that are out gives us opportunities to bring people back. We will need to get up to some 6,000 people in the event we do move to a full production ramp-up.

Speaker #1: But the constraint will be how quickly we can bring people on board and train them. I think it will be the highest level skills that will be the hardest.

Tristan Pascall: The constraint will be how quickly we can bring people on board and train them. I think it will be the highest level skills that will be the hardest. We'll certainly be able to get to 80% or 90% of our throughput within the six to nine months that we've spoken about, and we think that guidance remains relevant, as good as we have for the time being. The last 10% to 20% of optimization will take time and rely on really those high level of skills. Lawson, that's how we see it. It would still take six to nine months, we think.

Speaker #1: We'll certainly be able to get to 80 or 90% of our throughputs within the six to nine months that we've spoken about. And we think that guidance remains relevant.

Speaker #1: As good as we have for the time being, but the last 10 to 20% of optimization will take time, and rely on really those high level of skills that Lawson, that's how we see it.

Speaker #1: It will still take six to nine months, we think.

Speaker #3: We'll move to our next question from Matthew Murphy at BMO Capital Markets.

Operator: We'll move to our next question from Matthew Murphy at BMO Capital Markets.

Matthew Murphy: Hi. More questions on Cobre Panamá. Congratulations on the restart. This ministerial commission, first, it's a regular schedule meeting that's happening between the ministers. Do you have any insight into when those meetings happen, how frequently? Is it your understanding you could be engaged at any time? Presumably, regardless of what they say, they'll have to engage with you. Do you know, is your expectation that that process has to finish, there has to be some recommendations made to the president, and then you'd be consulted? If you have any insight into what's on the government's agenda right now. Do you think the mine is first and foremost, or are there other events going on in Panama?

Speaker #4: Hi. More questions on COBRA Panama. So and congratulations on the restart. But this ministerial commission, okay, so first, it's a regular scheduled meeting that's happening between the ministers.

Speaker #4: Do you have any insight into when those meetings happen? How frequently? And then, is it your understanding you could be engaged at any time?

Speaker #4: Or presumably, regardless of what they say, they’ll have to engage with you. But do you know—is your expectation that that process has to finish?

Speaker #4: There has to be some recommendations made to the president, and then you'd be consulted? And then if you have any insight into what's on the government's agenda, right now, do you think the mine is first and foremost, or are there other events going on in Panama?

Speaker #1: Yeah, thanks, Matthew. So look, in regards to the ministerial commission, certainly the commission has established a schedule of regular meetings. And I don't think they're not all of those are published, but the indication when they first announce around the 14th of July was sort of two to three times a week there's a lot to go through.

Tristan Pascall: Yes. Thanks, Matthew. In regards to the ministerial commission, certainly the commission has established a schedule of regular meetings, I don't think not all of those are published. The indication when they first announced around 14 July was sort of two to three times a week. There's a lot to go through. I think at that time, when Minister Malto, the Minister of Commerce, spoke around what was involved, he made it very clear how much effort would be involved going through in a diligent way through the entire comprehensive audit. We respect that process. We don't necessarily think that there can't be engagement in parallel, that would be an opportunity. However, we will take our guidance from government around this timetable.

Speaker #1: I think at that time, when Minister Molto, the Minister of Commerce, spoke about what was involved, he made it very clear how much effort would be involved in going through, in a diligent way, the entire comprehensive audit.

Speaker #1: And we respect that process. We don't necessarily think that there can't be engagement in parallel, that that would be an opportunity. However, we will take our guidance from government around this timetable and certainly there's an indication from the minister of commerce around their commitment to go through this in a serious manner and report back to the president their recommendations for what the future of the mine will be.

Tristan Pascall: Certainly there's an indication from the minister, Minister of Commerce, around their commitment to go through this in a serious manner and report back to the president their recommendations for what the future of the mine will be.

Speaker #3: We'll take our next question from Anita Sunny at CIBC World Markets.

Operator: We'll take our next question from Anita Soni at CIBC World Markets.

Tristan Pascall: Sure, Anita. Thanks for the question. Again, we're not at that phase yet, and we will follow government process around engagement, and the steps forward from here. If and when that happens, we said previously before that we think the total involved would be some $350 to 500 million, of which this $250 million for the initial stockpile processing would be inclusive. We have no reason to change those numbers at the moment. We think that's reasonable. Ryan, we gave some guidance around the cost of those operations. Maybe you could just fill in on the cost side of things, the operating cost side.

Speaker #5: Thank you. Good morning, and thanks for taking my question, Tristan. So my question was just around restart costs. I think we established, or you guys have indicated, it was around $250 million, including working capital, to get that processing plant restarted.

Speaker #5: For the second leg, as you restart the mining operations, could you give us an idea of what the capital would look like for that portion of it?

Speaker #1: Sure. Anita, thanks for the question. And again, we're not at that stage yet, and we will follow government process around engagement and the steps forward from here.

Speaker #1: But if and when that happens, we said previously before that we think the total involved would be some 350 to 500 million. Of which this 250 million for the initial stockpile processing would be inclusive.

Speaker #1: And we have no reason to change those numbers at the moment. We think that's reasonable. Ryan, we gave some guidance around the cost of those operations.

Speaker #1: Maybe you could just fill in on the cost side of things, the operating cost side.

Speaker #4: Yeah, sure. So as you said, Tristan, 250 million dollars in terms of that ramp-up is appropriate. We've spent around 60 million dollars of that as of June 30th.

Ryan MacWilliam: Sure. As you said, Tristan, $250 million in terms of that ramp-up is appropriate. We've spent around $60 million of that as of 30 June. The rest of that will come through in the balance of the year. Then to go from there, if we get to the point that, as Tristan said, we're moving to full operations, that's an incremental $200 million split across additional operating costs, working capital and CapEx. In that respect, we're obviously waiting for the government's guidance on next steps before we get into that. Broadly, in line with expectations in terms of Cobre Panamá stockpile processing across both the ramp-up and start-up costs and the operating costs we're seeing coming out of that.

Speaker #4: The rest of that will come through in the balance of the year. And then, to go from there, if we get to the point that, as Tristan said, we're moving to full operations, that's an incremental $200 million split across additional operating costs, working capital, and capex.

Speaker #4: But in that respect, we're obviously waiting for the government's guidance on next steps before we get into that. But broadly, in line with expectations, in terms of COBRA Panama stockpile processing across both the ramp-up and start-up costs, and the operating costs we're seeing coming out of that.

Speaker #5: Okay, thank you. I think that's it for my questions. Most of the other ones have been asked.

Anita Soni: Okay. Thank you. I think that's it for my questions. Most of the other ones have been asked.

Speaker #3: We'll go next to Ian Rosso at Barclays.

Operator: We'll go next to Ian Rossouw at Barclays.

Speaker #6: Thank you. Just coming back to COBRA Panama and the stockpile processing. Just sort of curious, what determines the decision in terms of the throughput rate?

Ian Rossouw: Thank you. Just coming back to Cobre Panamá and the stockpile processing. Just sort of curious, what determines the decision in terms of the throughput rate? Obviously, you say it's 38 million tons. I guess, that's basically the one line for a year. If you wanted to increase the throughput rates, would you be able to do that and perhaps treat two lines? Just wanted to get your thoughts around that. Ryan, just on that sort of spending within, you mentioned in Q2 the $60 million. I see you stripped out some of that, about $40 million out of EBITDA. Will you do that again in Q3, or was that just a one-off?

Speaker #6: Obviously, you say it's 38 million tons. Obviously, I guess one that's basically the one line for a year. But if you wanted to increase the throughput rates would you be able to do that?

Speaker #6: And perhaps three, two lines—I just wanted to get your thoughts around that. And Ryan, just on that sort of spending within—you mentioned in Q2 the $60 million. I see you struck out some of that, about $40 million, out of EBITDA.

Speaker #6: Will you do that again in Q3, or was that just a one-off?

Speaker #1: Thanks, Ian. So yeah, in terms of what could be done, with the stockpile ramp-up, we will please have the first production year come through from train 3.

Tristan Pascall: Thanks, Ian. In terms of what could be done with the stockpile ramp-up, we were pleased to have the first production in come through from train three, and I guess it's testament to the amount of effort by the team there on the preservation activities over the last two and a half years and the investment made by the company to ensure asset integrity that we've been able to see those start up well. There's been a lot of acute focus on safety. Really a focus on making sure we do things reliably rather than with velocity or with excess speed, really that we build a solid platform. Train three started up very well. We had liners there that we want to exhaust, and we've now used those liners. We've now taken train three down, and we've already moved across onto train two.

Speaker #1: And I guess it's a testament to the amount of effort by the team there on the preservation activities over the last two and a half years, and the investment made by the company to ensure asset integrity, that we've been able to see those start up well.

Speaker #1: There's been a lot of acute focus on safety, really a focus on making sure we're doing things reliably rather than with velocity or with excess speed.

Speaker #1: Really, we've built a solid platform, and Train 3 started up very well. We had liners there that we wanted to exhaust, and we've now used those liners.

Speaker #1: So we've now taken Train 3 down, and we've already moved across onto Train 2. And your question is whether we could bring on, say, Train 1 as we go and do the re-line on Train 3.

Tristan Pascall: Your question is whether we could bring on, say, train one, as we go and do the reline on train three, and that's a possibility. It's really limited by people and bringing people back. At this stage, the 3,000 that we have on site, it feels appropriate. We're only able, for example, to give out six-month contracts at the moment because of the nature of the limited activities that we're allowed to do. At the higher skill level, that will be a challenge until and if and when we get a green light, that we would be able to provide people greater clarity around their employment. We could potentially add another train, but at this stage, we're focused around moving now on train two, and at that level, we'd consider we'd have enough stockpiles for around 12 months of operation.

Speaker #1: And if that's a possibility, it's really limited by people and bringing people back. At this stage, for the 3,000 that we have on site, it feels appropriate.

Speaker #1: We're only able, for example, to give out six-month contracts at the moment because of the nature of the limited activities that we're allowed to do.

Speaker #1: And so at the higher skill level, that will be a challenge until and if and when we get a green light that we will be able to provide people greater clarity around their employment.

Speaker #1: And so we could potentially add another train, but at this stage, we're focused around moving now on train 2. And at that level, we consider we'd have enough stockpiles for around 12 months of operation.

Speaker #1: In terms of the cost, Ryan, could you take that question?

Tristan Pascall: In terms of the costs, Ryan, could you take that question?

Speaker #4: Sure. So Ian, the 250 million dollars in restart for the stockpile processing is broken up in three components. The first is 50 million dollars of working capital outflows.

Ryan MacWilliam: Sure. Ian, the $250 million in restart for the stockpile processing is broken up in three components. The first is $50 million of working capital outflows, that doesn't report to EBITDA. The second is $100 million of CapEx, that also doesn't go into EBITDA. To the crux of your question, the third is $100 million of operating costs associated with the commissioning. That's what we've adjusted EBITDA for. We've taken that out of adjusted EBITDA. You saw a $40 million adjustment in Q2, and we expect to take the balance, the $60 million adjustment, as we spend that in H2 out of EBITDA. In short, none of that $250 million is flowing through to EBITDA.

Speaker #4: So, that doesn't report to EBITDA. The second is $100 million of capex, so that also doesn't go into EBITDA. And then, to the crux of your question, the third is $100 million of operating costs associated with the commissioning.

Speaker #4: That's what we've adjusted EBITDA for. We've taken that out of adjusted EBITDA. You saw a $40 million adjustment in Q2, and we expect to take the balance—the $60 million adjustment—as we spend that in the second half of the year out of EBITDA.

Speaker #4: So, in short, none of that $250 million is flowing through to EBITDA.

Speaker #3: We'll move to our next question from Miles Osap at UBS.

Operator: We'll move to our next question from Myles Allsop at UBS.

Myles Allsop: Great. Thank you. Yes, a few quick questions. Maybe first on Taca Taca. Should we be concerned that the ESIA and the water permits are taking longer to come through? I mean, could it take another 12 months and we missed a RIGI deadline and we're in trouble? What's happening there? That's the first question.

Speaker #6: Great. Thank you, yes. A few quick questions. Maybe first on Taketaka. Is there should we be concerned that the ESIA and the water permits are taking longer to come through?

Speaker #6: I mean, is this could it take another 12 months and we missed the riggy deadline and we're in trouble? I mean, what's happening there?

Speaker #6: That's the first question.

Speaker #1: Yeah, sure, Miles. Thanks. So, Taketaka, yes, there have been some slight ESIA and water permit issues with the provincial authorities in Salta. There have been some role changes there.

Tristan Pascall: Yeah, sure, Myles. Thanks. Taca Taca, yes, there's been some slight delays. We applied for the ESIA and water permit with the provincial authorities in Salta. There have been some role changes there, as new people have come in, I think it's natural that they take a while to get behind the desk. As we see things, in terms of questions and backwards and forwards, we think we're sort of through that question round. Our understanding is the process will move forward in due order. We've had confirmation that the application is under review, and we haven't received any further information requests for some time. That says to us that it's now in the serious stage of review. Obviously, with those role changes, it has taken a little longer, but we're not concerned about that given the feedback that we're getting from Salta.

Speaker #1: And so, as new people have come in, I think it's natural that they take a while to get behind the desk. But as we see things, in terms of questions and backwards and forwards, we think we're sort of through that question round.

Speaker #1: And our understanding is the process will move forward in due order. We've had confirmation that the application is under review, and we haven't received any further information requests for some time.

Speaker #1: So that says to us that it's now in the serious stage of review. Obviously, with those role changes, it has taken a little longer, but we're not concerned about that given the feedback that we're getting from Salta.

Speaker #6: Okay, reassuring. And maybe, secondly, a question for Ryan on the unit cost inflation. You say that you've got $0.25 kind of risk from currency and fuel.

Myles Allsop: Okay. Reassuring. Maybe secondly, a question for Ryan on the unit cost inflation. You say that you got $0.25 risk from currency and fuel, and additional risk if current conditions persist. If we say your midpoint of guidance is, what, ZMW 228. At spot diesel and currency, how much should we think unit cost will be? Is it $0.30, $0.40 higher than the midpoint of the current guidance range?

Speaker #6: And additional risk if current conditions persist. So if we say a midpoint of guidance is what, 2.28, at spot, kind of diesel and currency, how much should we kind of think unit cost will be?

Speaker #6: Is it 30 cents, 40 cents higher than the midpoint of the current guidance range?

Tristan Pascall: Ryan, do you want to take that?

Speaker #1: Ryan, do you want to take that?

Ryan MacWilliam: Yeah. Thanks, Myles. Yeah. In short, that $0.25 is if you take our current guidance and you inflate the rest of the year costs for spot fuel, spot kwacha, and spot gold. We get a slight tailwind on the gold side, but headwinds on both fuel and the kwacha. I'd take the midpoint of our cost guidance and add the $0.25 in if we assume we see a higher cost environment that we're seeing today continue in a pretty static manner for the balance of the year.

Speaker #4: Yeah. Thanks, Miles. Yeah. So in short, that 25 cents is if you take our current guidance and you inflate the rest of the year costs for spot fuel spot quota and spot gold.

Speaker #4: So, we get a slight tailwind on the gold side, but headwinds on both fuel and the quota. So, I'd take the midpoint of our cost guidance and add the 25 cents in, if we assume we see a higher cost environment that we're seeing today continue in a pretty static manner for the balance of the year.

Speaker #3: We'll go next to Cody Hayden at Deutsche Bank.

Operator: We'll go next to Cody Hain at Deutsche Bank.

Cody Hain: Hello, thank you for taking my question. Just on Taca Taca. I think you previously spoken about the potential to bring in a strategic partner, I was wondering if your thinking has evolved on this, or if there are any updates you can share regarding partnership discussions or funding considerations at this stage. Thank you.

Cody Hayden: Hello, thank you for taking my question. Just on Taca Taca. I think you previously spoken about the potential to bring in a strategic partner, I was wondering if your thinking has evolved on this, or if there are any updates you can share regarding partnership discussions or funding considerations at this stage. Thank you.

Speaker #5: Hello and thank you for taking my question. Just on Taketaka, I think you previously spoken about the potential to bring in a strategic partner and I was wondering if you're thinking how to evolve on this or if there are any updates you can share regarding partnership discussions or funding considerations at this stage.

Speaker #5: Thank you.

Tristan Pascall: Thanks, Cody. Thanks for the question. Ryan, do you want to talk about potential partners and partnership at Taca Taca?

Speaker #1: Thanks, Cody. Thanks for the question. Ryan, do you want to talk about potential partners and partnership at Taketaka?

Speaker #4: Sure. A real focus on Taketaka at the moment is on de-risking the project. Those activities are the ones that Tristan's talked about around the ESIA, and work around preparing the riggy application.

Ryan MacWilliam: Sure. Our real focus on Taca Taca at the moment is on de-risking the project. Those activities are the ones that Tristan's talked about around the ESIA work, around preparing the RIGI application. From a funding perspective, I think we're fortunate that we have a range of options. We've previously talked about the fact that we can look at putting a project finance in place. We've signed a working agreement with the IFC in preparation for that potential work stream. We've talked about the fact that we could bring a partner in. We've talked about the fact that there are significant gold byproduct credits associated with Taca Taca that would be amenable to streaming. We will consider all of those options in due course. It is early stage in terms of looking at funding options.

Speaker #4: From a funding perspective, I think we're fortunate that we have a range of options. We've previously talked about the fact that we can look at putting a project finance in place.

Speaker #4: We've signed a working agreement with the IFC in preparation for that potential workstream. We've talked about the fact that we could bring a partner in.

Speaker #4: We've talked about the fact that there are significant gold by-product credits associated with Taketaka that would be amenable to streaming. And we will consider all of those options in due course.

Speaker #4: But it is early stage in terms of looking at funding options. That's our real focus at the moment is on de-risking the project in advance of those considerations.

Ryan MacWilliam: I'd say our real focus at the moment is on de-risking the project in advance of those considerations.

Speaker #5: Got it. And secondly, if I may, just back to Colebrook Panama. Following the environmental audit, have you observed any meaningful shift in public sentiment towards demand through your community engagement?

Cody Hain: Got it. Secondly, if I may, just back to Cobre Panamá. Following the environmental audit, have you observed any meaningful shift in public sentiment towards the mine through your community engagement? Just kind of wondering how that's maybe progressed with recent updates. Thank you.

Cody Hayden: Got it. Secondly, if I may, just back to Cobre Panamá. Following the environmental audit, have you observed any meaningful shift in public sentiment towards the mine through your community engagement? Just kind of wondering how that's maybe progressed with recent updates. Thank you.

Speaker #5: Just kind of wondering how that's maybe progressed with recent updates. Thank you.

Tristan Pascall: Sure, Cody. On the public perception side, yeah, we actually logged in a new poll just in the last 24 hours or so. That was a group called Doxa. They're one of the authorized polling companies in Panamá alongside Gallup. It's not quite the same methodology as Gallup, but what we've seen compared to the last Gallup survey in May, which was a 55% approval rating, that Doxa were reporting a 63% favorable opinion of Cobre Panamá. Alongside that, in some of the questions that were asked, 55% of Panamanians supported President Mulino negotiating a new agreement with Cobre Panamá. 68% of people believe mining creates jobs. 63% believe it contributes to economic growth, and 67% believe it generates significant revenues for the country.

Speaker #1: Sure, Cody. So on the public perception side, yeah, we actually got in a new poll just in the last 24 hours or so. That was from a group called Doxa.

Speaker #1: They're one of the authorized holding companies in Panama alongside Gallup. And so it's not quite the same methodology as Gallup, but what we see compared to the last Gallup survey in May, which was a 55% approval rating, that Doxa will report in the 63% favorable opinion of Colebrook Panama.

Speaker #1: Alongside that, some of the questions that were asked, 55% of Panamanians supported President Molino negotiating a new agreement with Colebrook Panama. 68% of people believe mining creates jobs.

Speaker #1: 63% believe it contributes to economic growth. And 67% believe it generates significant revenues for the country. That's in the context by Cody where we have been continuing our outreach efforts and social media affairs, live events.

Tristan Pascall: That's in the context, Cody, where we have been continuing our outreach efforts, on social media fairs, and live events. I think to date, or since this year, and last year, some 420,000 direct engagements with people since suspension. Really, that's been about educating people around the benefits of the mine, to discuss the sovereignty of Panamá over its national resources, to talk about contribution to the economy and what that means in a local context on the ground with people, and our commitments to mining responsibly with the highest standards.

Speaker #1: I think to date, or since this year, we've had some and last year some 420,000 direct engagements with people since suspension. And really, that's been about educating people around the benefits of the mine to discuss the sovereignty of Panama over its national resources to talk about contribution to the economy and what that means in a local context on the ground with people.

Speaker #1: And our commitments to mining responsibly with the highest standards.

Operator: Our next question comes from Craig Hutchison at TD Cowen.

Speaker #3: Our next question comes from Craig Hutchison at TD Cowen.

Speaker #6: Hi, guys. Thanks for taking my question. I just wanted to ask about the African assets. Sales have lagged production here for a couple of quarters in a row.

Craig Hutchison: Hi, guys. Thanks for taking my question. I just wanted to ask on the African assets, sales have lagged production here for a couple of quarters in a row. Can you just maybe talk to some of the logistical issues there and whether you think we could see that reverse itself in Q3? Thanks.

Speaker #6: Can you just maybe talk to some of the logistical issues there and whether you think we could see that reverse itself in the third quarter?

Speaker #6: Thanks.

Speaker #1: Thanks, Craig. Ryan, do you just want to talk about production versus sales?

Tristan Pascall: Thanks, Craig. Ryan, do you just want to talk about production versus sales?

Speaker #4: Yeah, sure. So Craig, where we saw the big difference was in Q1, and that was really just a function of ending the year-end last year with very low finished goods inventories.

Ryan MacWilliam: Yeah, sure. Craig, where we saw the big difference was in Q1. That was really just a function of ending the year-end last year with very low finished good inventories. I'd say to some extent what you've seen is that normalized through mostly Q1, but also coming into Q2. The export channel is working well through the variety of transport corridors and ports that we're using. As I say, that delta is principally driven by the low starting inventories at the end of last year. We expect fairly stable sales versus production for the balance of this year.

Speaker #4: And I'd say to some extent, what you've seen is that normalized through mostly Q1, but also coming into Q2. So the export channel is working well through the variety of transport corridors and ports that we're using.

Speaker #4: And, as I say, that delta is principally driven by the low starting inventories at the end of last year. We expect fairly stable sales versus production for the balance of this year.

Speaker #6: Okay, great. And just on the sulfuric acid—you flagged potential surplus in Q3 here. Is that something that could be material and potentially lower cost, or is it fairly small volumes?

Craig Hutchison: Okay, great. Just on the sulfuric acid, you flagged potential surplus in Q3 here. Is that something that could be material and potentially lower cost, or is it fairly small volumes?

Speaker #4: Yeah, Craig. So, what we saw is an $18 million benefit from selling that sulfuric acid in Q2, and we're seeing that continue. So, in Q2, that had around a $0.05 benefit to our C1 cost because the acid reports as a by-product.

Ryan MacWilliam: Yeah. Craig, what we saw is an $80 million benefit from selling that sulfuric acid in Q2. We're seeing that continue. In Q2, that had around a $0.05 benefit to our C1 costs because the acid reports as a byproduct. We see potential for similar sorts of sales through the H2 of this year, potentially another $0.05 benefit. Obviously, that's very contingent on what happens in the Middle East and do we see sulfuric acid come back to the market. I would say Q3, we both expect higher diesel prices to hit our costs, and that will be a tailwind, and then we do expect some sulfuric acid sales in Q3 to somewhat offset those diesel costs.

Speaker #4: We see potential for similar sorts of sales through the second half of this year, so potentially another $0.05 benefit. But obviously, that's very contingent on what happens in the Middle East and whether we see sulfuric acid come back to the market.

Speaker #4: But I would say Q3, we both expect higher diesel prices to hit our costs, and that will be a headwind. And then we do expect some sulfuric acid sales in Q3 to somewhat offset those diesel costs.

Speaker #3: And we'll move next to Marcio Ferried at Goldman Sachs.

Operator: We'll move next to Marcio Ferreira at Goldman Sachs.

Speaker #1: Thank you. Just a quick one on my side. I know we've talked about the cost to process the stockpile at Cobre Panamá at $4.50 per pound in terms of C1, and we've talked about the CAPEX and operating costs for the ramp-up as well.

Marcio Ferreira: Thank you. Just a quick one on my side. I know we've talked about the cost to process the stockpile at Cobre Panama at $4.5 per pound in terms of C1, and we've talked about the CapEx and operating cost for the ramp-up as well. Just wondering if it's maybe too early, but how should we think about, once Cobre Panama is eventually at steady state and nameplate capacity, how should we think about the C1 and operating cost for that operation, considering maybe three and a half years of cost inflation that we have observed globally? That would be great. Thank you.

Marcio Farid: Thank you. Just a quick one on my side. I know we've talked about the cost to process the stockpile at Cobre Panama at $4.5 per pound in terms of C1, and we've talked about the CapEx and operating cost for the ramp-up as well. Just wondering if it's maybe too early, but how should we think about, once Cobre Panama is eventually at steady state and nameplate capacity, how should we think about the C1 and operating cost for that operation, considering maybe three and a half years of cost inflation that we have observed globally? That would be great. Thank you.

Speaker #1: Just wondering if it's maybe too early, but how should we think about, once Cobre Panama is eventually at steady state and nameplate capacity, how should we think about a C1 and operating cost for that operation, considering maybe three and a half years of cost inflation that we have observed globally? That would be great.

Speaker #1: Thank you.

Speaker #2: Thanks, Marcio. Ryan, are you able to take that question on cost?

Tristan Pascall: Thanks, Marcio. Ryan, are you able to take that question on costs?

Speaker #4: Yeah, sure, Marcio. Yeah, I think it is too early to put out specific guidance. As Tristan noted, we're laser focused on the stockpile processing, doing that in a stable, environmentally responsible, and safe manner.

Ryan MacWilliam: Yeah, sure, Marcio. I think it is too early to put out specific guidance. As Tristan noted, we're laser-focused on the stockpile processing, doing that in a stable, environmentally responsible, and safe manner. If the government takes next steps at that stage, we'll consider both more detail around the ramp-up cost to fill operations and also the operating costs associated with those operations. We would expect the operating philosophy and approach would be similar to what it previously was in terms of cost performance. If you take those operating costs that we saw three years ago and inflate that by what you've seen across large copper mines in the industry, I think that would be a sensible way of considering what would that look like on a full restart.

Speaker #4: If the government takes next steps at that stage, we'll consider both more detail around the ramp-up costs to full operations and also the operating costs associated with those operations.

Speaker #4: We would expect the operating philosophy and approach would be similar to what a previously was in terms of cost performance. So if you take those operating costs that we saw three years ago and inflate that by what you've seen across large copper mines in the industry, I think that would be a sensible way of considering what would that look like on a full restart.

Speaker #4: So you're getting closer to the probably before we would one to 150 C1, and now we're probably going to be somewhere between 150 and 180 C1.

Ryan MacWilliam: You're getting closer to the, probably before we were at $1 to 150 C1, and now we're probably going to be somewhere between $150 and 180 C1.

Speaker #1: Okay, that's great. And quick follow-up—obviously, the gold and copper hedge has come to an end this quarter. Fully exposed to spot now. Is there a plan to eventually review the hedging policy and add some hedges again, or are you planning to just stick with spot exposure for now?

Marcio Ferreira: Okay, that's great. A quick follow-up. Obviously, the gold and copper hedges come to an end this quarter, fully exposed to spot now. Is there a plan to eventually review the hedging policy and add some hedges again, or the plan is just to stick with a spot exposure for now? Thanks, Ryan.

Marcio Farid: Okay, that's great. A quick follow-up. Obviously, the gold and copper hedges come to an end this quarter, fully exposed to spot now. Is there a plan to eventually review the hedging policy and add some hedges again, or the plan is just to stick with a spot exposure for now? Thanks, Ryan.

Speaker #1: Thanks, Ryan.

Speaker #4: Yeah, sure, Marcio. So, philosophically, we think about hedging as an insurance tool. So we've put in hedges when we've had periods of high capital spend combined with leverage on the balance sheet.

Ryan MacWilliam: Yeah, sure, Marcio. Philosophically, we think about hedging as an insurance tool. We've put in hedges when we've had periods of high capital spend combined with leverage on the balance sheet, and we did see that last year with Panamá offline and the S3 project underway. With S3 now being completed, the strong copper price has meant that we've let those hedges roll off. I think our plan would be to stay unhedged, but we always have that as a tool in the toolbox. If we see capital spending coming or we think the balance sheet needs extra protection, we will revisit that. As I said, as we sit here today, because of the strong outlook for the H2 of this year and strong copper prices into next year, there's no near or medium-term plan to go back into hedging.

Speaker #4: And we did see that last year with Panama offline. And S3 project underway. With S3 now being completed, the strong copper price has meant that we've let those hedges roll off.

Speaker #4: Now, I think our plan would be to stay unhedged, but we always have that as a tool in the toolbox. If we see capital spending coming, or we think the balance sheet needs extra protection, we will revisit that.

Speaker #4: But as I say, as we set here today, because of the strong outlook for the second half of this year, it's strong copper prices into next year, there's no near or medium-term plan to go back into hedging.

Speaker #3: And we'll take our final question today from Miles Osap at UBS.

Operator: We'll take our final question today from Myles Allsop at UBS.

Speaker #2: Great, thanks. Just a quick follow-up question on Colebrook Panama. I mean, obviously, if the government gets to aggressive, with the proposal as in when it comes, how quickly can you revert back to arbitration and how confident are you that you can kind of defend shareholder value here?

Myles Allsop: Great. Thanks. Just a quick follow-up question on Cobre Panamá. Obviously, if the government gets too aggressive with the proposal, as and when it comes, how quickly can you revert back to arbitration and how confident are you that you can kind of defend shareholder value here?

Speaker #1: Thanks, Miles. Sure. Look, our arbitration remains in suspension, but all the companies' rights are protected there, Miles. And we can reinitiate that. The panel was established.

Tristan Pascall: Thanks, Myles. Sure. Look, our arbitration remains in suspension, all the company's rights are protected there, Myles, and we can reinitiate that. The panel was established. What we see is that we've seen constructive progress in Panamá. There's been good progress to date, and we can point to really concrete progress milestones around the Preservation and Safe Management plan approval last year, and then moving into concentrate sales, restart of the power plant, and then more recently, processing of the stockpiles, both to ensure integrity of the assets and also environmental stewardship. That is a step forward in terms of re-employment, hiring back 1,000 people. We see that as good faith. Arbitration is not the preferred outcome, and we would look to deal with the matter in a constructive mode.

Speaker #1: But what we see is that we've seen constructive progress in Panama. There's been good progress to date, and we can point to really concrete progress milestones around the preservation and safe management plan approval last year, and then moving into concentrate sales, restart of the power plants, and then more recently, processing of the stockpiles, both for to ensure integrity of the assets and also environmental stewardship, but that is a step forward in terms of reemployment, hiring back 1,000 people.

Speaker #1: So we see that as good faith. Arbitration is not the preferred outcome, and we would look to deal with the matter in a constructive manner.

Tristan Pascall: In terms of aggression, we think that it needs to be balanced between economic realities and reputation, but also consciousness of providing benefit to Panamanians and full transparency around that process. That's our focus. As I said, arbitration is not a preferred outcome, but all our rights are protected there.

Speaker #1: And in terms of aggression, we think that it needs to be balanced between economic realities and reputation, but also a consciousness of providing benefit to Panamanians and full transparency around that process.

Speaker #1: So that's our focus. As I said, arbitration is not a preferred outcome, but all our rights are protected there.

Speaker #2: Great. Thank you. Good luck.

Myles Allsop: Great. Thank you. Good luck.

Speaker #3: And that concludes our Q&A session. I will now turn the conference back over to Tristan Pascall for closing remarks.

Operator: That concludes our Q&A session. I will now turn the conference back over to Tristan Pascall for closing remarks.

Speaker #1: Thank you, operator. And thank you, everybody, for your valuable time today.

Tristan Pascall: Thank you, operator, and thank you everybody for your valuable time today.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.

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