Q2 2026 Central Asia Metals Earnings Call

August 26, 2026

Speaker #1: Hello, and welcome to the CAML Results Call. Please note that this conference is being recorded. I'm handing you over to your host, Mr. Gavin Ferrar, to begin today's conference.

Operator: Hello and welcome to the CAML results call. Please note that this conference is being recorded. I am going to hand it over to your host, Mr. Gavin Ferrar, to begin today's conference. Please go ahead.

Speaker #1: Please go ahead.

Speaker #2: Good morning, and welcome to the Central Asia Metals PLC H1 2026 results presentation. Thank you all for joining, and I’m looking forward to presenting what are a solid set of results to you today.

Gavin Ferrar: Good morning and welcome to the Central Asia Metals PLC H1 2026 results presentation. Thank you all for joining and looking forward to presenting what are a solid set of results to you today. I think if we skip through the next four slides, which is basically disclaimer, disclaimer. It is getting bigger and bigger because of the multiple jurisdictions now, but onto an overview of our business as it currently stands today. We have a portfolio of producing base metal assets complemented by some exciting exploration prospects. The producers are the Kounrad project that is in Kazakhstan. We own that 100% and it has been producing copper profitably for us since 2012 and is licensed out to 2034.

Speaker #2: So, I think if we skip through the next four slides, which are basically disclaimer, disclaimer, disclaimer, disclaimer—it's getting bigger and bigger because of the multiple jurisdictions now.

Speaker #2: But on to an overview of our business as it currently stands today. We have a portfolio of producing base metal assets, complemented by some exciting exploration prospects.

Speaker #2: The producer is the Kounrad project that is in Kazakhstan. We own that 100%, and it’s been producing copper profitably for us since 2012. It is licensed out to 2034.

Speaker #2: We have the SASA underground lead-zinc mine in North Macedonia. Again, we've owned that since 2017, and it has been producing lead and zinc consistently for a fair amount of time, with a mine life out to 2034 based on our current reserve statement and by adding a small proportion of resources into that life of mine plan.

Gavin Ferrar: We have the Sasa underground lead zinc mine in North Macedonia. Again, owned that since 2017 and has been producing lead and zinc consistently for a fair amount of time with a mine life out to 2034 based on our current reserve statement and adding a small proportion of resources into that life of mine plan. In terms of exploration, as I said, exciting prospects out in Kazakhstan where we have two exploration companies focusing on base metals exploration and targeting high-grade base metals projects that we can afford to build. We have completed some maiden drilling programs at two of our projects, and we have added another important project to that portfolio in Kazakhstan as well. Lastly but not least, Aberdeen Minerals, which is a minority position we hold in an exploration company, privately held, looking for copper and nickel mineralization up in Scotland.

Speaker #2: In terms of exploration, as I said, we have exciting prospects out in Kazakhstan, where we have two exploration companies focusing on base metals exploration, targeting high-grade base metals projects that we can afford to build.

Speaker #2: So, we've completed some maiden drilling programs at two of our projects, and we've added another important project to that portfolio in Kazakhstan as well.

Speaker #2: And lastly, but not least, Aberdeen Minerals, which is a minority position we hold in an exploration company, privately held, looking for copper and nickel mineralization up in Scotland.

Speaker #2: And most recently, we've agreed to invest another £1.15 million into that business to fund another drilling program, and that'll take our ownership there up to around 38.9%.

Gavin Ferrar: Most recently, we have agreed to invest another GBP 1.15 million into that business to fund another drilling program. That will take our ownership there up to around 38.9%. A great underlying asset base. Today we present a string of solid financials, if we go to the next slide, please, which reflect this solid operational performance in an attractive commodity price environment. Having a look at the financial results on the left-hand side, we produced revenue of $145.5 million versus just under $100 million in the same period last year. With EBITDA correspondingly higher at $75.5 million, up from $39.9 million, with a healthy margin of 52%.

Speaker #2: So, a great underlying asset base, and today we present a string of solid financials as we go to the next slide, please, which reflect this solid operational performance in an attractive commodity price environment.

Speaker #2: So, having a look at the financial results on the left-hand side, we've produced revenue of $145.5 million versus just under $100 million in the same period last year.

Speaker #2: With EBITDA correspondingly higher at $75.5 million, up from $39.9 million. So, a healthy margin of 52%. That has generated cash flow of $46.8 million, and that has driven a dividend that we announced today of 8p, which is right in the middle of our dividend policy range of 30 to 50%, so that 8p represents 40% of that free cash flow.

Gavin Ferrar: That has generated cash flow of $46.8 million, and that has driven a dividend that we announced today of 8p, which is right in the middle of our dividend policy range of 30% to 50%, so that 8p represents 40% of that free cash flow. Cash in the bank at the end of the period, $97.2 million leaves us in a very healthy position, in terms of our balance sheet. Moving on to the operations. As you can see there, we have achieved a slight increase in production in Kazakhstan, which has been a really good result given the weather that we experienced in Q1, up 1% from the previous period. Importantly, North Macedonia, Sasa, we have seen some improvements in production there. We have got an extra 5% of zinc metal and an extra 6% of lead metal as some of the improvement initiatives start kicking in that operation.

Speaker #2: Cash in the bank at the end of the period, $97.2 million, leaves us in a very healthy position in terms of our balance sheet.

Speaker #2: And moving on to the operations, as you can see there, we've achieved a slight increase in production in Kazakhstan, which has been a really good result given the weather that we experienced in Q1—up 1% from the previous period.

Speaker #2: And, importantly, at North Macedonia's SASA, we've seen some improvement in product production there. We've got an extra 5% of zinc metal and an extra 6% of lead metal, as some of the improvement initiatives start kicking in at that operation.

Speaker #2: Unfortunately, we did suffer two LTIs. We do strive for a zero-harm workplace, so the focus for the rest of the year is really getting that number of 1.73 down to our targeted number.

Gavin Ferrar: Unfortunately, we did suffer two LTIs. We do strive for a zero harm workplace. The focus for the rest of the year is really getting that number of 1.73 down to our targeted number. It is looking good so far in terms of that. As I said, very focused on health and safety there as well. If we move to the next slide, please, which is our investment case for CAML. I think if anything, this investment case has become stronger over the last few months. We will go through the three elements of it just quickly for you. First of all, we have got cash generation. As I said earlier, almost $47 million of cash generated, which is almost threefold increase period on period. With $97.2 million in the bank, it is a really healthy position to be in.

Speaker #2: But it's looking good so far, in terms of that. But as I said, very, very focused on health and safety there as well. So if we move to the next slide, please.

Speaker #2: Which is our investment case for CAML. Now, I think if anything, this investment case has become stronger over the last few months. We'll go through the three elements of it just quickly for you.

Speaker #2: So, first of all, we've got cash generation. As I said earlier, almost $47 million of cash was generated, which is almost a three-fold increase period-on-period.

Speaker #2: And with $97 million and $97.2 million in the bank, it is a really healthy position to be in. That cash generation is from the high-margin CUNRAD copper production and improving SASA performance.

Gavin Ferrar: That cash generation is from the higher margin Kounrad copper production and improving Sasa performance. Returns, we have demonstrated consistent shareholder returns, returning over $437 million back to our shareholders in cash since our IPO, which is a lot more than we have ever raised from the market. We will continue with disciplined capital allocation. Importantly, we are now adding some really good growth to our portfolio. As I had mentioned earlier, the advancing exploration portfolio in Kazakhstan, Aberdeen Minerals, and the proposed Cygnus transaction, which we will talk about a bit later in the presentation, has the potential to add a near-term producer to our portfolio, plus with significant exploration upside. At this point, we will just talk about that capital allocation on the next slide a little bit.

Speaker #2: Returns. We've demonstrated consistent shareholder returns, returning over $437 million back to our shareholders in cash since our IPO, which is a lot more than we've ever raised from the market.

Speaker #2: And we will continue with disciplined capital allocation. And importantly, we are now adding some really good growth to our portfolio. As I mentioned earlier, the advancing exploration portfolio in Kazakhstan, Aberdeen Minerals, and the proposed Cygnus transaction, which we'll talk about a bit later in the presentation, has the potential to add a near-term producer to our portfolio, plus significant exploration upside.

Speaker #2: So at this point, we'll just talk about that capital allocation on the next slide a little bit. And I think what we've got here is the balancing of capital allocation, which is reflected in that 8p dividend which I spoke about earlier and that we've announced today.

Gavin Ferrar: I think what we have got here is the balancing of capital allocation, which is reflected in that 8p dividend, which I spoke about earlier and that we have announced today. That basically provides attractive returns to our shareholders while retaining enough capital and cash on the balance sheet to finance our growth ambitions. As you can see in these three sort of bullet points here, or three sort of columns of the slide, we have returned a significant amount of money to our shareholders via share buybacks and dividends. The strong balance sheet supports our growth ambitions. We have paid over 208p of cash to our dividends since IPO. Now we are going to continue with a balanced approach to capital allocation, funding both returns to shareholders growth and continuing with a financially strong base on our balance sheet.

Speaker #2: That basically provides attractive returns to our shareholders while retaining enough capital and cash on the balance sheet to finance our growth ambitions. So, as you can see in these three, sort of, bullet points here—or three columns of the slide—we've returned a significant amount of money to our shareholders via share buybacks and dividends.

Speaker #2: The strong balance sheet supports our growth ambitions. We've paid over 208p of cash dividends since IPO, and now we're going to continue with a balanced approach to capital allocation.

Speaker #2: Funding both returns to shareholders, growth, and continuing with a financially strong base on our balance sheet. So effectively, this allows us to build on the strong foundations that we currently have and set the business up for long-term success.

Gavin Ferrar: Effectively, this allows us to build on the strong foundations that we currently have and set the business up for long-term success. I will hand over to Louise now, who, her and her team have been slaving over the summer to generate the financials that we are presenting today. Thanks, Louise.

Speaker #2: So I'll hand over to Louise now, who, along with her team, have been slaving over the summer to generate the sort of financials that we're presenting today.

Speaker #2: So thanks, Louise.

Speaker #3: Thank you. Yeah, if you go on to the next slide... and then, next slide, yeah. Perfect, thanks. So, if we just start off by looking at some of the macro conditions that are important in understanding the very strong results that we have announced this morning.

Louise Wrathall: Thank you. Yeah, if you go on to next slide and then next slide. Yeah, perfect. Thanks. If we just start off by looking at some of the macro conditions that are important in understanding the very strong results that we have announced this morning. Obviously, we have had strong production performance in H1 of this year, but I think it is important to acknowledge the commodity prices, which have been very supportive of our financial results today. In particular, we can see in the little table at the bottom, we have a copper price which is 39% higher on average for H1 of this year versus H1 2025, and also the zinc price 26% higher in H1 of this year versus H1 2025. Also, it is worth pointing out silver.

Speaker #3: Obviously, we've had strong production and performance in the first half of this year, but I think it's important to acknowledge the commodity prices, which have been very supportive of our financial results to date.

Speaker #3: In particular, we can see in the little table at the bottom that we've got copper prices, which are 39% higher on average for the first half of this year versus H1 2025.

Speaker #3: And also the zinc price, 26% higher in the first half of this year versus the first half of 2025. Also, it's worth pointing out silver.

Speaker #3: The silver price has had spikes of up to $115 an ounce in the first half of the year. As we've explained before, silver doesn't affect our profitability, but it does affect our revenue and it does affect our costs.

Louise Wrathall: The silver price has had spikes of up to $115 an ounce in H1 of the year. As we have explained before, silver does not affect our profitability, but it does affect our revenue, and it does affect our costs. So you do see increased revenue and increased cost of sales because of that silver. So that has been, yeah, very high silver prices during the period, which affect the way the P&L looks. Looking over to the right-hand column, treatment charges. This has been very supportive for us as well during H1 of this year. So in total, our treatment charges came in at EUR 2.7 million, and that is EUR 2.2 million less than they were for the first half of last year. And that was very much supported by lead treatment charges actually turning negative in H2 of this year.

Speaker #3: So you do see increased revenue and increased cost of sales because of that silver. And so there have been very, very high silver prices during the period, which affect the way the P&L looks.

Speaker #3: Looking over to the right-hand column—treatment charges—this has been very supportive for us as well during the first half of this year. So in total, our treatment charges came in at $2.7 million.

Speaker #3: And that's $2.2 million less than they were for the first half of last year. And that was very much supported by lead treatment charges actually turning negative in the second half of this year.

Speaker #3: And we have those contracts to remind you, from the 1st of April all the way through to the 1st of April 2027. So we've locked in those negative lead treatment charges.

Louise Wrathall: And we have those contracts, to remind you, from 1 April all the way through to 1 April 2027. So we have locked in those negative lead treatment charges. And then finally, just to look at foreign exchange and inflation. This is a little bit more of a negative story for us with a weaker US dollar against both of our operating currencies. So US dollar is 7% weaker versus the first half of last year for the dinar and 5% for Kazakh tenge. And it has the impact of increasing local costs in both of the areas. Inflation, it remained elevated at 11% in Kazakhstan, a little bit lower at 4% in North Macedonia. What I should point out in terms of the zinc and in terms of foreign exchange, we had entered into some hedge contracts.

Speaker #3: And then finally, just to look at foreign exchange and inflation, this is a little bit more of a negative story for us, with a weaker US dollar against both of our operating currencies.

Speaker #3: So, the US dollar is 7% weaker versus the first half of last year for the dinar, and 5% for the Kazakh tenge. And that really impacts increases, as the impact of increasing local costs in both of the areas.

Speaker #3: Inflation remained elevated at 11% in Kazakhstan, and a little bit lower at 4% in North Macedonia. What I should point out in terms of zinc and in terms of foreign exchange is that we had entered into some hedge contracts.

Speaker #3: So, 50% of the hedge of the zinc production at SASA for this year we've hedged at $3,000 and $2,200. So, we've recorded in the P&L a loss of around $1.4 million for that.

Louise Wrathall: So 50% of the zinc production at Sasa for this year, we have hedged at 3,011. We have recorded a P&L, a loss of around EUR 1.4 million for that. On foreign exchange, we had also hedged some of the US dollar euro exposure because the dinar is pegged to the euro, and that has been more or less flat. I think it is a tiny loss of around EUR 0.1 million for that hedge as well for the foreign exchange. Moving on to the next slide, we can talk through the income statement. I think first to point out, our revenue is up 46% period on period, and that is from EUR 99.5 million up to EUR 145.5 million. That is driven by the commodity prices being much higher that we have talked about, the copper, the zinc, and also the silver, up 128% versus the previous period.

Speaker #3: And on foreign exchange, we'd also hedged some of the US dollar–euro exposure because the dinar is pegged to the euro. And that's been more or less flat.

Speaker #3: I think it's a tiny loss of around $0.1 million for that hedge as well, for the foreign exchange. And moving on to the next slide, we can talk through the income statement.

Speaker #3: So I think, first, to point out, our revenue is up 46% period-on-period. That's from $99.5 million up to $145.5 million. That's driven by the commodity prices being much higher, as we've talked about—the copper, the zinc, and also the silver, which is up 128% versus the previous period.

Speaker #3: But it's also due not just to strong production performance, but also higher sales. Interestingly, in H1 2025, we ended that period for copper with a fair bit of copper in stock.

Louise Wrathall: But it is also due to not just strong production performance, but also higher sales. Interestingly, in H1 2025, we ended that period for copper with a fair bit of copper in stock. Our actual copper sales this year versus the first half of last year are 9% higher as well. Zinc and lead really just reflect the increased production of the two periods of around 5% and 4% respectively. Of course, we were also helped on the revenue line with a reduction in treatment charges because that comes off on the revenue line in the P&L. Cost of sales, that was up by about EUR 10 million. You could explain more than all of that with the increased silver purchase price, the EUR 8.8 million that we have to pay to purchase silver to fulfill our contract with OR Royalties.

Speaker #3: So, our actual copper sales this year, versus the first half of last year, are 9% higher as well. And zinc and lead really just reflect the increased production.

Speaker #3: The other two pairs have around about 5% and 4%, respectively. And, of course, we're also helped on the revenue line with a reduction in treatment charges, because that comes off on the revenue line in the P&L.

Speaker #3: Cost of sales was up by about $10 million. You could explain more than all of that with the increased silver purchase price—the $8.8 million that we have to pay to purchase silver to fulfill our contract with OR Royalties.

Speaker #3: And also, there was an increase in our depreciation, which I think we've previously flagged. That was from £14 million to £15.9 million, and that really reflects the sort of mathematically shorter life at SASA that we're currently envisaging to 2034.

Louise Wrathall: Also there was an increase in our depreciation, which I think we have previously flagged. That was from EUR 14 million to EUR 15.9 million, and that really reflects the sort of mathematically shorter life at Sasa that we are currently envisaging to 2034. That gets you to effectively an increase of EUR 11 million. There is a big positive in cost of sales there because Kounrad's MET, which is the revenue royalty that we pay, that reduced from EUR 5 million down to EUR 0.8 million, and there was a reduction in the rate by about 90% there. So there is a positive for our cost of sales there. We did also have cost increases of EUR 2.4 million at the operations, and that was largely related to this weaker US dollar against our operating currencies.

Speaker #3: And that gets you to, effectively, an increase of $11 million. There's a big positive in cost of sales there because Kunran's MET, which is the revenue royalty that we pay, reduced from $5 million down to $0.8 million.

Speaker #3: And there was a reduction in the rate by about 90% there, so that's a positive for our cost of sales. We did also have cost increases of $2.4 million at the operations.

Speaker #3: And that was largely related to this weaker US dollar against our operating currencies. And then finally, the last main factor in there is an increase in concession fee at SASA due to the slightly higher production and due to the higher commodity prices as well.

Louise Wrathall: Finally, the last main factor in there is an increase in concession fee at Sasa due to the slightly higher production and due to the higher commodity prices as well. Admin, relatively flat there. It is up by 3% or EUR 0.5 million. EUR 0.3 million of that is increased business development costs, mainly related to the potential Cygnus acquisition. There are a few other ups and downs from there because actually UK costs were generally flat. We had EUR 0.1 million up in Kazakhstan, and then at Sasa, there were also some elevated admin expenses in large part related to the severance pay that we have paid. Taking all that into account, EBITDA up by 89% to just under EUR 76 million.

Speaker #3: Admin is relatively flat there—up by 3%, or £0.5 million. £0.3 million of that is increased business development costs, mainly related to the potential Cygnus acquisition.

Speaker #3: There are also a few other ups and downs in there because, actually, UK costs were generally flat. We added £0.1 million up in Kazakhstan.

Speaker #3: And then at SASA, there were also some elevated admin expenses, in large part related to the severance pay that we've paid. So, taking all that into account, EBITDA is up by 89%.

Speaker #3: Just under $76 million, and good EBITDA performance at both of the operations as well. A 78% increase in our EBITDA at Kounrad, and a 62% increase in EBITDA at Sasa—now up to $19.3 million at Sasa.

Louise Wrathall: A good EBITDA performance at both of the operations as well, 78% increase in our EBITDA at Kounrad and a 62% increase at our EBITDA at Sasa, up now to $19.3 million at Sasa. If we look as well some other aspects to pull out on the P&L, one of the biggest swings there is this fair value movement in share-based payment liability. This is since we accounted for our LTIPs as being cash settled rather than equity settled. There is a swing of around EUR 9 million there. That reflects the weaker share price performance up until 30 June. Clearly that will move up and down period on period, depending on the largely share price factors. Tax up quite significantly, up by EUR 10.8 million. That is driven by higher profits at Kounrad because those are taxed at 20%.

Speaker #3: So if we look as well, some other aspects to pull out on the P&L: one of the biggest swings there is this fair value movement in the share-based payment liability.

Speaker #3: This is since we accounted for our LTIPs as being cash settled rather than equity settled, so there's a swing of around £9 million there.

Speaker #3: That reflects the weakest share price performance up until the 30th of June. So, clearly, that will move up and down period-on-period depending largely on share price factors.

Speaker #3: Tax is up quite significantly, by £10.8 million. That's driven by higher profits at Kounrad, because those are taxed at 20%. Also, there's been an increase in Kazakh withholding tax from 10% to 15%.

Louise Wrathall: Also there has been an increase in Kazakh withholding tax from 10% to 15%, and that is referenced from 1 January this year. We did bring all our cash back to the UK in the H1, but we just take half of that, 50% of that through the P&L for the H1 of this year. Then really just to finally focus on the EPS, which is up by 330% period-on-period. We have also highlighted there an adjusted EPS. All that does is strips out a EUR 1.5 million unrealized hedge loss, which mathematically has accounted for what the hedge loss may be in the H2 of this year. We have provided the adjusted EPS just so you can see the underlying profitability of the business on that basis.

Speaker #3: And that's referenced from the 1st of January this year. We did bring all our cash back to the UK in the first half, but we just take half of that—50% of that—through the P&L for the first half of this year.

Speaker #3: And then, really, just to finally focus on the EPS, which is up by 330% period-on-period. We've also highlighted there an adjusted EPS.

Speaker #3: All that does is strip out a $1.5 million unrealized hedge loss, which mathematically is accounted for what the hedge loss may be in the second half of this year.

Speaker #3: So we've provided the adjusted EPS, just so you can see the underlying profitability of the business on that basis. So, if we go to the next slide, please, we can look at the costs at both of the operations now.

Louise Wrathall: If we go on to the next slide, please, and we can look at the costs at both of the operations now. At Kounrad, our costs for the H1 were up by 12 cents, and that was really based on pretty much consistent cathode production, as I say, up by 1%. Over half of that was related to the strengthening of the tenge versus the US dollar. Actually, if we look at that processing total line, where we have gone up from EUR 8.4 million to EUR 9.5 million, over half of that was related to foreign exchange, and the rest of the costs are up by about 6%, which is less than inflation. All in all, a pretty good result there. A couple of other factors just to point out. We also see higher payroll there.

Speaker #3: So at Kunrad, our costs for the first half were up by 12 cents. And that was really based on pretty much consistent cathode production, as you say, up by 1%.

Speaker #3: Over half of that was related to the strengthening of the Tenge versus the US dollar. And actually, if we look at that processing total line, where we've gone up from 8.4 million to 9.5 million, over half of that was related to foreign exchange.

Speaker #3: And the rest of the costs are up by about 6%, which is less than inflation. So, all in all, a pretty good result there.

Speaker #3: A couple of other factors just to point out—we also see higher payroll there. Again, payroll is very much linked to the strength of the Tenge.

Louise Wrathall: Again, payroll is very much linked to the strength of the tenge and also to pay rises, inflation-related pay rises, which we gave the workforce in January this year. It is also worth pointing out power costs were slightly lower period on period. That was rather due to a large amount of power used in H1 2025 rather than necessarily a reduction per se in this half. That is just due to some changes in the chemistry. But it is worth pointing out that we know we are going to get a power increase for seven months this year, starting from 1 June, and that is because the tariff has been increased from, rounded from 6 cents per kilowatt hour to 7 cents per kilowatt hour. So we will see a slightly higher power charge come through in the H2 of this year.

Speaker #3: And also to pay rises, inflation-related pay rises, which we gave the workforce in January this year. It's also worth pointing out power costs were slightly lower period-on-period.

Speaker #3: That was rather due to a large amount of power used in H1 2025, rather than necessarily a reduction per se in this half. That's just due to some changes in the chemistry.

Speaker #3: But it's worth pointing out that we know we're going to get a power increase—and for seven months this year, starting from the 1st of June—and that's because the tariff has been increased from, rounded, from 6 cents per kilowatt hour to 7 cents per kilowatt hour.

Speaker #3: So we will see a slightly higher power charge come through in the second half of this year. But all in all, I think it was a good performance in costs, given the headwinds from the exchange rates.

Louise Wrathall: But all in all, I think a good performance in costs, given the headwinds from the exchange rates. We have delivered an EBITDA margin for Kounrad of 84%, of course, helped by the strong copper prices for the H1 of this year. If we go on to the next slide, we can look at Sasa now. We are very pleased with the performance of Sasa. Site operating costs are more or less flat or up by 2% or USD 0.4 million. Again, we are dealing with a weaker US dollar there, so stronger operating currencies of 7%, and that cost is factoring that in. We can also see the largest increase in costs there you can see in the processing line.

Speaker #3: And we've delivered an EBITDA margin for Kounrad of 84%, of course helped by the strong copper prices for the first half of this year.

Speaker #3: So, if we go on to the next slide, we can look at SASA now. We're very pleased with the performance of SASA.

Speaker #3: So, site operating costs were more or less flat—up by 2%, or $0.4 million. Again, we're dealing with a weaker US dollar there, so stronger operating currencies of 7%.

Speaker #3: And that cost is factoring that in. We can also see the largest increase in costs—there, you can see—in the processing line. And a million of that increase is due to our tailings disposal costs, where we've purposefully prioritized putting our tailings in the paste backfill underground and on the dry stack tailings as well, to maintain the capacity in TSS4.

Louise Wrathall: A million of that increase is due to our tailings disposal costs, where we have purposefully prioritized putting our tailings in the paste backfill underground and on the dry stack tailings as well to maintain the capacity in TSF4. That is the main factor. But actually our mining costs have been very encouraging. That is an area where we have had a lot of emphasis on our improvements. All in all, our mining costs are lower by USD 0.7 million. There is actually an increase there in fuel, which is just to do with some of the conflicts that we see in the world. Taking that out, our savings would have looked even higher.

Speaker #3: So that's the main factor. But actually, our mining costs have been very encouraging. That's an area where we've placed a lot of emphasis on making improvements.

Speaker #3: So all in all, our mining costs are lower by $0.7 million. There's actually an increase there in fuel, which is just to do with some of the conflicts that we see in the world.

Speaker #3: And actually, so taking that out, our savings would have looked even higher. Reduced spare parts and payroll savings as well were two key factors from the headcount reductions, which we pushed through in November, and also some additional ones in the first quarter of this year as well.

Louise Wrathall: Reduced spare parts and payroll savings as well were two key factors from the headcount reductions which we pushed through in November and also some additional ones in the Q1 of this year as well. Electricity costs remain stable because we hedged the electricity price for H1, so they remain stable versus H1 2025. All that is very positive on the site-based costs and encouragingly, our C1 cost base is actually lower period on period. That has fallen from USD 32.1 million down to USD 30.8 million. That is really helped by those lower treatment charges that I mentioned. That brings the overall package of realization costs down from USD 6.4 million to USD 4.7 million. We have got an EBITDA margin now back into the 30 percentiles, which we are very encouraged about.

Speaker #3: Electricity costs remain stable because we hedged the electricity price for H1, so they remain stable versus H1 2025. So all that's very positive on the site-based costs.

Speaker #3: And, encouragingly, our C1 cost base is actually lower, period on period. That’s fallen from £32.1 million down to £30.8 million. And that’s really helped by those lower treatment charges that I mentioned, so that brings the overall package of realisation costs down from £6.4 million to £4.7 million.

Speaker #3: And we've got an EBITDA margin now back into the 30% range, which we're very encouraged about. We move on to the next slide and just a quick look at our capex, which is very much on track.

Louise Wrathall: If we move on to the next slide, just a quick look at our CapEx, which is very much on track. Group CapEx for the H1, USD 9.5 million. Sasa CapEx of that was USD 8 million. Underground development, underground equipment, and also the raise boring project. There is USD 1.4 million of that, and that project concluded in July this year. At Kounrad, we spent USD 1.4 million, which is the usual drip of pipes, some new anodes, and also USD 0.2 million on replacement boilers as well. Then we reiterate our guidance from USD 14.5 million to USD 17.5 million for the two operations for the full year 2026. Exploration-wise, it is worth pointing out we spent USD 1.6 million at CAML X and CAML XD.

Speaker #3: So, group CAPEX for the first half was $9.5 million. SASA CAPEX of that was $8 million—underground development, underground equipment, and also the raise boring projects.

Speaker #3: There was $1.4 million of that, and that project's concluded in July this year. At Kunrad, we spent $1.4 million, which is the usual drip of pipes.

Speaker #3: Some new anodes and also $0.2 million on replacement boilers as well. And then we reiterate our guidance from $14.5 million to $17.5 million for the two operations for the full year 2026.

Speaker #3: Exploration-wise, it's worth pointing out we spent $1.6 million at Camelex and Camelex Gate. We've completed maiden drilling programs at two of those sites.

Louise Wrathall: We've done maiden drilling programs at 2 of those sites, and we've done some geophysics at the third site as well. We still intend to do some more drilling as the year progresses there, and we should still spend between GBP 3 million and GBP 3.5 million in Kazakhstan as well. If we turn to the next slide, please, and we can look at the balance sheet. PPE, what we see there, the difference there reflects depreciation plus CapEx and a little of adverse foreign exchange movements in the difference between the 239 and the 226 million on the balance sheet. Investment in associate, that's our holding in Aberdeen Minerals. Since the period end, we've agreed to invest the final GBP 1.15 million or just under $1.6 million to take our percentage ownership up to just under 39%.

Speaker #3: And we've done some geophysics at the third site as well. We still intend to do some more drilling as the year progresses there. And we should still spend between $3 million and $3.5 million in Kazakhstan as well.

Speaker #3: If we turn to the next slide, please, we can look at the balance sheet. So, PPE: what we see there, the difference reflects depreciation plus capex, and a little bit of adverse foreign exchange movements in the difference between the £239 million and the £226 million on the balance sheet.

Speaker #3: Investment in associate, that's our holding in Aberdeen Minerals. We have since the period end, we've agreed to invest the final 1.15 million pounds or just under 1.6 million dollars to take our percentage ownership up to 39, just under 39%.

Speaker #3: So, the 1.2 million of warrants mentioned there is what we exercised in January, so the second half will see the last portion of those warrants exercised.

Louise Wrathall: The 1.2 million of warrants mentioned there is what we exercised in January. The H2 will see the last portion of those warrants exercised. Inventory, we were very pleased to see that that's decreased by 3 million. That reflects a lot of effort that we've put in at Sasa in a program to reduce our inventory, which has actually reduced from around about this time last year to here, by almost 5 million. We see 3 million of that reflected in these results. That's very pleasing to see. Other factors to point out there is, as we announced, we completed a share premium cancellation in April this year, and that really transfers from the share premium account 206 million into our distributable reserve, into retained earnings, sorry, to create distributable reserves primarily for future dividends.

Speaker #3: Inventory—we were very pleased to see that that's decreased by $3 million. That reflects a lot of effort that we've put in at SASA in a program to reduce our inventory, which has actually reduced from around about this time last year to here.

Speaker #3: By almost 5 million, and we see 3 million of that reflected in these results. So that's very pleasing to see. Another factor to point out there is, as we announced, we completed a share premium cancellation in April this year.

Speaker #3: And that really transfers from the share premium account, so £106 million, into our distributable reserves, into retained earnings—sorry—to create distributable reserves primarily for future dividends.

Speaker #3: So that shows that bigger swing on the balance sheet there. And then finally, just to say that we've got a really strong balance sheet.

Louise Wrathall: That sees that bigger swing on the balance sheet there. Then finally, just to say that we've got a really strong balance sheet ended at 30 June with $97 million of cash. We also have 0.4 million of restricted cash and the $97 million does include a 0.9 million overdraft. But that's all the borrowings that we have. Then final slide for me. If we move to the next one. Thank you. We can look at the H1 2026 free cash flow. If we go across the waterfall chart, we've got cash generated from operations of $71 million, the $17.3 million of dividends. That was the 2025 final dividend of 7.5p. Income tax and withholding tax at 19.8. That's less cash tax than we see on the P&L. That's because particularly in Kazakhstan, you pay your tax based on last year's profits.

Speaker #3: And at 30th of June, we had $97 million of cash. We also have $0.4 million of restricted cash, and the $97 million does include a $0.9 million overdraft.

Speaker #3: But that's all the borrowings that we have. And then, final slide from me—if we move to the next one, thank you—and we can look at the H1 2026 free cash flow.

Speaker #3: So if we go across the waterfall chart, we've got cash generated from operations of £71 million. The £17.3 million of dividends—that was the 2025 final dividend of 7.5p.

Speaker #3: Income tax and withholding tax are at 19.8. That's less cash tax than we see on the P&L. That's because, particularly in Kazakhstan, you pay your tax based on last year's profits.

Speaker #3: So there'll be a catch-up that we'll have to do in paying some more tax from August to December this year, and we've put that plan in place.

Louise Wrathall: There'll be a catch-up that we'll have to do in paying some more tax from August to December this year. We've put that plan in place. But that $19.8 million does include the full amount of the withholding tax of around 10 million that we paid when bringing our dividends back to the UK, all of them in the H1 of this year. CapEx exploration, Aberdeen investment, we've already talked about. The share buyback of $4.8 million. We completed a $10 million share buyback, half of which was in the H2 of last year, and the $4.8 million was completed by March this year. That was the final portion of that 10 million that we committed to buy back. So we ended the period with the $97 million of cash that I mentioned, excluding the 0.4 million restricted cash, but including the 0.9 million overdraft.

Speaker #3: But that $19.8 million does include the full amount of the withholding tax of around $10 million that we paid when bringing our dividends back to the UK, all of them in the first half.

Speaker #3: Of this year, capex, exploration, and Aberdeen investment—we've already talked about. The share buyback of 4.8 million; we completed a 10 million share buyback, half of which was in the second half of last year.

Speaker #3: And the 4.8 million was completed by March this year, so that was the final portion of that 10 million that we committed to buy back.

Speaker #3: And so, we ended the period with the $97 million of cash that I mentioned, excluding the $0.4 million restricted cash, but including the $0.9 million overdraft.

Speaker #3: When we look at our free cash flow and our adjusted free cash flow, which inform the dividend calculations, we have added back on half of that withholding tax just to spread that evenly over the two six-month periods.

Louise Wrathall: When we look at our free cash flow and our adjusted free cash flow, which informs the dividend calculation, we have added back on half of that withholding tax just to spread that evenly over the two 6-month periods. That gives us adjusted free cash flow for the 6 months of 46.8 million, and that is an 189% increase versus the 16.2 million that we generated in the H1 2025. I will hand back to Gavin to run through the operations.

Speaker #3: So, that gives us adjusted free cash flow for the six months of $46.8 million, and that's a 189% increase versus the $16.2 million that we generated in the first half of 2025.

Speaker #3: So, I'll hand back to Gavin to run through the operations.

Speaker #2: Thanks, Louise. No, we're going to start with the Kounrad on the next slide, please. Thank you. Yeah, solid performance at Kounrad, as you've seen in the numbers that Louise was talking about, both in terms of costs and revenues.

Gavin Ferrar: Thanks, Louise. We are going to start with Kounrad on the next slide, please. Thank you. Solid performance at Kounrad, as you have seen in the numbers that Louise was talking about, both in terms of costs and revenues. As I said earlier, the cathode production was up 1%, with sales up a little bit against the previous period just due to inventories held in 2025. We are on track to meet that full year guidance of 12,000 to 13,000 tonnes. We are solidly on track for that. Copper prices continue to be high. Looking for good revenue from Kounrad from the end of June out to the end of the year as well. We did have that one LTI. Fortunately, it was not too serious.

Speaker #2: As I said earlier, the cathode production was up 1%. The sales were up a little bit against the previous period, just due to inventories held in 2025.

Speaker #2: But we're on track to meet that full-year guidance of 12,000 to 13,000 tons. We are solidly on track for that, and copper prices continue to be high.

Speaker #2: So, looking for good revenue from Kunrad from the end of June out to the end of the year as well. We did have that one LTI.

Speaker #2: Fortunately, it wasn't too serious, but again, lots of learning to be taken from these things. And procedures in place to try and prevent a similar accident happening again.

Gavin Ferrar: Again, lots of learning to be taken from these things and procedures in place to try and prevent a similar accident happening again. In terms of cumulative production at Kounrad, really good. Since we started producing in 2012, we have done over 185,000 tonnes of cathode copper. All at very good quality, all sold into the market, so no problem. Excellent performer here and, as I said earlier, licensed out to 2034. Can we jump onto the next slide, please, where we talk about a little bit of the outlook for the business at Kounrad. With those record-high copper prices we achieved in 2020, H1 at least, we are leveraging the strong operational performance, and we are looking to continue that into the H2 of this year. Our focus remains on maximizing the efficiency of the asset.

Speaker #2: And in terms of cumulative production at Kounrad, really good. Since we started producing in 2012, we've done over 185,000 tonnes of cathode copper, all at very good quality, all sold into the market.

Speaker #2: So, no problem. So, excellent performer here. And, as I said earlier, licensed out to 2034. So, if we jump onto the next slide, please, we can talk a little bit about the outlook for the business.

Speaker #2: At Kunrad, with the record-high copper prices we achieved in 2020—at least in the first half—we're leveraging strong operational performance, and we're looking to continue that into the second half of this year.

Speaker #2: Our focus remains on maximizing the efficiency of the asset. We've got industry-leading margins there, and we'd like to keep it that way. The only significant update, really, in terms of resources and reporting is that in support of the Cygnus transaction, we've published updated mineral resources and a maiden ore reserve, actually, at Kunrad.

Gavin Ferrar: We have got industry-leading margins there and we would like to keep it that way. The only significant update really in terms of resources and reporting is that, in support of the Cygnus transaction, we have published updated mineral resource and a maiden ore reserve actually at Kounrad out this month as well. That is both JORC and NI 43-101 compliant. The JORC ore reserve currently stands at just shy of 408,000 tonnes of contained copper. As those of you who followed us for a while know, the amount we can recover from that, recovery rates range between 38% and 55%, really, depending on where we are leaching. We are never going to recover that whole 0.7. As I said before, we have taken out 185, and that leaves, in terms of theoretically, 75,500 tons remaining, and that is more than sufficient to support operations out to 2034.

Speaker #2: Out this month as well. So that is both JORC and 43-101 compliant. And the JORC oil reserve currently stands at just shy of 408,000 tons of contained copper.

Speaker #2: But, as those of you who have followed us for a while know, the amount we can recover from that—recovery rates range between sort of 38% and 55%, really, depending on where we're leaching.

Speaker #2: So we're never going to recover that whole 407. And as I said before, we've taken out 185. And that leaves, in terms of theoretically, 75 and a half thousand tons remaining.

Speaker #2: And that's more than sufficient to support operations out to 2034. But if you look at that little chart that we've got in the middle of the slide there, we have performed our forecast recoveries all the way through the operations.

Gavin Ferrar: But if you look at that little chart that we've got in the middle of the slide there, we have outperformed our forecast recoveries all the way through the operation. We would look at that 75,400 tons as a minimum out to 2034, with potential to extend beyond that if we can get the license renewed. That solar plant, as Louise was saying, with an increase in electricity tariffs, is becoming ever more valuable and has supplied 18% of our electricity for the H1 of the year. Moving on to Sasa. As I said before, we're starting to see the benefits of the full review that we conducted in 2025. That review spanned resources, reserves, operating procedures, financial metrics, and we are seeing some of the production metrics coming through that are reflecting an improved performance at Sasa.

Speaker #2: So we would look at that 75,400 tons as a minimum out to 2034, with potential to extend beyond that if we can get the license renewed.

Speaker #2: That solar plant, as Louise was saying, with an increase in electricity tariffs, is becoming ever more valuable and has supplied 18% of our electricity for the first half of the year.

Speaker #2: Moving on to SASA, as I said before, we started to see the benefits of the full review that we conducted in 2025. Now, that review spanned resources, reserves, operating procedures, and financial metrics, and we are seeing some of the production metrics coming through that are reflecting improved performance at SASA.

Speaker #2: Not only are the ore mine tonnages higher, but also the metal that is contained within that ore, as I said, is 5% higher in zinc and 6% higher in lead.

Gavin Ferrar: Not only are the ore mine tonnages higher, but also the metal that is contained within that ore, as I said, is 5% higher in zinc and 6% higher in lead. Again, timely, given the enhanced zinc prices we're benefiting from right now as well. So guidance of 18,000 to 20,000 tons of zinc and 26,000 to 28,000 tons of lead is still in range. We're looking to achieve that this year. Again, with the zinc prices remaining robust, we're looking for a solid financial performance coming out of Sasa over the rest of the year. Similar to Kounrad, we've published JORC and NI 43-101 compliant ore reserve statements and mineral resource estimates in support of the Cygnus transaction. Just getting back to that improvement program I was talking about, we're still continuing to do that with the emphasis on mining performance and cost control.

Speaker #2: Again, timely, given the enhanced zinc prices we’re benefiting from right now as well. So, guidance of 18,000 to 20,000 tons of zinc and 26,000 to 28,000 tons of lead.

Speaker #2: It's still in range. We're looking to achieve that this year. And again, with zinc prices remaining robust, we're looking for a solid financial performance coming out of SASA over the rest of the year.

Speaker #2: Similar to Kunrad, we've published JORC and 43-101 compliant oil reserve statements and mineral resource estimates in support of the Cygnus transaction. And just getting back to that improvement program I was talking about, we're still continuing to do that, with the emphasis on mining performance and cost control.

Speaker #2: And you can see from the chart on the right-hand side, we have—you can see the improvements in tonnage, improvements in grades, which means less dilution.

Gavin Ferrar: You can see from the chart on the right-hand side, you can see the improvements in tonnage, improvements in grades, which means less dilution, and that's reflected in the higher metal tons that we've produced. Next slide, please. We're not going to sit on our laurels at Sasa. We continue to strive for more improvements there. So far, we're looking at these improvements in productivity, staffing levels, and cost control. As Louise was saying, really good results on the inventory management there as well. So for H1 2026, I think we've done some really good things in terms of drill meters that we're getting in lateral development, enhancing that grade control model and reducing the inventory numbers there. Those will continue and into H2, we're going to continue to focus on executing on our life of mine plan and our 2026 budget.

Speaker #2: And that's reflected in the higher metal tons that we've produced. Next slide, please. We're not going to sit on our laurels at SASA; we continue to strive for more improvements there.

Speaker #2: And so far, we're looking at these improvements in productivity, staffing levels, and cost control. And, as Louise was saying, really good results on the inventory management there as well.

Speaker #2: So for H1 2026, I think we've done some really good things in terms of the drill meters that we're getting in lateral development, enhancing that grade control model, and reducing the inventory.

Speaker #2: Numbers there, and those will continue. Into H2, we're going to continue to focus on executing on our life of mine plan and our 2026 budget.

Speaker #2: We're trying to improve maintenance planning through data collection and analysis there, and also strengthening the team further. We have a new geologist joining—a new chief geologist joining—in H1.

Gavin Ferrar: We're trying to improve maintenance planning through data collection and analysis there, and also strengthening the team further. We had a new geologist join, new chief geologist join in H1. We've got a few key hires coming in, who've actually joined already, a few of them already. Just strengthening the team, mainly around planning and execution of underground mining, which is where we see the major opportunity for improvement there. Moving on to the business in more general on the next slide, please. Sustainability remains a core sort of element of our business success. I won't go through the slide in a lot of detail. I'll just provide you with a few of the highlights that we achieved during the period. So in terms of health and safety, in 2025, we actually instituted a full review of the health and safety on both sites.

Speaker #2: We've got a few key hires coming in. In fact, she has already joined, as have a few of them. Just strengthening the team, mainly around planning and execution of underground mining, which is where we see the major opportunity for improvement there.

Speaker #2: So, moving on to the business in more general terms on the next slide, please. Sustainability remains a core part—a core sort of element—of our business success.

Speaker #2: I won't go through the slide in a lot of detail—I'll just provide you with a few of the highlights that we achieved during the period.

Speaker #2: So, in terms of health and safety, in 2025, we actually instituted a full review of the health and safety on both sites. We've workshopped this all with the site guys.

Gavin Ferrar: We workshopped this all with the site guys as well and came up with a new sort of structure for a group safety culture, which we started implementing into 2026. That's been really well received on site and at head office. As I said, unfortunately, we did suffer those two LTIs during the H1. But the really stringent focus on health and safety always and moving forward. In terms of community investment, we continue to invest in education, infrastructure, and importantly, and more fun, is some business acceleration program that we've got in Sasa where we've actually now financed four businesses and four startups there. That in conjunction with the other things that we're doing in terms of STEAM, children's centers, and just generally looking after our communities and maintaining that license to operate. Part of that is obviously environmental management, and that's been a continued focus.

Speaker #2: As well, we came up with a new sort of structure for group safety culture, which we started implementing in 2026. So that's been really well received.

Speaker #2: On site and at head office, as I said, unfortunately, we did suffer those two LTIs during the half, but there is always a really stringent focus on health and safety, both now and moving forward.

Speaker #2: In terms of community investment, we continue to invest in education, infrastructure and, importantly—and more fun—is some business acceleration program that we've got in Sasa, where we've actually now financed four businesses and four startups there.

Speaker #2: That's in conjunction with the other things that we're doing in terms of STEAM, children's centers, and just generally looking after our communities and maintaining that license to operate.

Speaker #2: Part of that is obviously environmental management, and that's been a continued focus. Three key elements there that we've kicked off this year are: we've actually completed our biodiversity management and climate resilience reviews across both operations.

Gavin Ferrar: Three key elements there that we've kicked off this year is we've actually completed our biodiversity management and climate resilience reviews across both operations. We're updating our closure plans, specifically given the changes at Sasa with the two new plants that Louise mentioned there. In terms of tailings management at Sasa, we've managed to put 77% of our tailings either back underground through paste backfill or onto the dry stack landform, thus preserving TSF4, which is the last wet tailings facility for 2034 and beyond. If we look at the capital outlook and allocation, if we can jump forward two slides, please. Thanks. We've made really good advances across the entire exploration portfolio. Just a little more detail on what we've spoken about before. At CAML XD, which is 100% owned by us, we have an option over an additional project in the Teniz Basin.

Speaker #2: We're updating our closure plans, given the changes at SASA with the two new plants that Louise mentioned. In terms of tailings management at SASA, we've managed to put 77% of our tailings either back underground through paste backfill or onto the dry stack landform, thus preserving TSF4, which is the last wet tailings facility, for 2034 and beyond.

Speaker #2: So, if we look at the capital outlook and allocation—if we can jump forward two slides, please. Thanks. We've made really good advances across the entire exploration portfolio.

Speaker #2: Just a little more detail on what we've spoken about before. So, it can only extend, which is 100% owned by us. We also have the option over an additional project in the Tenges Basin.

Speaker #2: This is a highly prospective region for sediment-hosted copper, and it also sits adjacent to an existing license that we've got already. We've undertaken some field work there.

Gavin Ferrar: This is a highly prospective region for sediment-hosted copper, and it also sits adjacent to an existing license that we've got already. We've undertaken some fieldwork there the minute we got hold of that option and have delineated drill targets with drilling of about 4,600 meters planned in the latter H2 of this year and into 2027. That's a highly prospective license that we've got hold of there. That option is for three years, and we can extend it for another year basis exploration results there. CAML X continues to churn through its licenses. Excellent team out there. We've had maiden drilling programs, very exciting at Otyar and Yuzhnoe. 4,300 meters were drilled across 15 diamond holes, and actually we've intersected mineralization at both. At Otyar, a structurally controlled polymetallic mineralized system was discovered with visible sphalerite and galena.

Speaker #2: The minute we got hold of that option, and have delineated drill targets, with drilling of about 4,600 meters planned in the latter half of this year and into 2027.

Speaker #2: So that's a highly prospective license that we've got hold of there. That option is for three years, and we can extend it for another year based on exploration results there.

Speaker #2: Canolex continues to churn through its licenses. Excellent team out there. And we've had maiden drilling programs, very exciting, at Otja and Jusnoya—4,300 meters drilled across 15 diamond holes. And actually, we've intersected mineralization at both. At Otja, a structurally controlled polymetallic mineralized system was discovered, with visible sphalerite and galena.

Speaker #2: And at Jusnoya, we've looked at we've actually looked at the core and seen copper moly mineralization. And this system extends over 1.2 kilometers of strike.

Gavin Ferrar: At Yuzhnoe, we've actually looked at the core and seen copper-moly mineralization, and this system extends over 1.2 kilometers of strike. Assay results, we're all on tenterhooks for those coming in Q3, and those will guide future explorations on those two licenses. The third license we focused on in Kazakhstan was Shayandy. That was a geophysical survey that we've undertaken. We're in interpretation mode there to generate drill targets, and we'll decide on where to target that drilling in the H2 of this year. Aberdeen Minerals, I think we've both spoken about that a fair amount. Effectively, we financed phase three drilling through that first warrant exercise. Phase four drilling will be financed through the final warrant exercise of 1.15 million. That'll take our shareholding up to 38.9%.

Speaker #2: So, as a result, we're all on tenterhooks for those coming in Q3, and those will guide future explorations on those two licenses. The third license we focused on in Kazakhstan was Shyandi.

Speaker #2: That was a geophysical survey that we've undertaken. We're in interpretation mode there to generate drill targets, and we'll decide on where to target that drilling.

Speaker #2: In the second half of this year, Aberdeen Minerals—I think we've both spoken about that a fair amount. Effectively, we financed phase three drilling through that first warrant exercise.

Speaker #2: Phase four drilling will be financed through the final warrant exercise of £1.15 million. That'll take our shareholding up to 38.9%. So, wishing Fraser and his team in Scotland all the very best for that fourth phase of drilling.

Gavin Ferrar: Wishing Fraser and his team in Scotland all the very best for that fourth phase of drilling there. In terms of growth on the next slide, please, we have made lots of progress. We have been talking about adding an asset to the business and the proposed transaction with Cygnus is reaching its final phases here now. We have effectively put out the scheme booklet, which is the one that gets lodged with the Australian Securities Exchange. That was published on 13 August. The UK circular to support the UK shareholder vote was published on 14 August. This, to remind you all, is an all-share transaction. We value the Cygnus equity at around AUD 232 million, and we are targeting completion in October this year. If all goes well, there are two key dates in that timetable on the right-hand side.

Speaker #2: Yeah. And in terms of growth—on the next slide, please—we've made lots of progress. We've been talking about adding an asset to the business.

Speaker #2: And the proposed transaction with Cygnus is sort of reaching its final phases here now. We've effectively put out the scheme booklet, which is the one that gets lodged with the Australian exchange.

Speaker #2: That was published on the 13th of August, and the UK circular to support the UK shareholder vote was published on the 14th of August.

Speaker #2: Now, this, to remind you all, is an all-share transaction. We value the Cygnus equity at around $232 million Australian, and we're targeting completion in October this year.

Speaker #2: So, if all goes well, there are two key dates in that timetable on the right-hand side. Fourth of September is the CAML shareholder vote.

Gavin Ferrar: 4 September is the CAML shareholder vote. Those of you listening in, don't forget to lodge your votes by 2 September, please. The Cygnus scheme meeting occurs on 18 September, where the Cygnus shareholders will vote, hopefully in favor of the scheme. We do have both boards of directors strongly recommending that our shareholders vote in favor. We have had proxy advisors, Glass Lewis, Institutional Shareholder Services, and PIRC, all on the CAML side, suggesting that shareholders vote in favor as well. The scheme booklet I mentioned earlier sets out all of the advantages and disadvantages of the scheme. I urge any Cygnus shareholders listening today to have a careful look at that and vote accordingly. Assuming this completes in October, what we really end up with is more copper exposure in the business in a Tier 1 jurisdiction.

Speaker #2: So, those of you listening in, don't forget to lodge your votes by the 2nd of September, please. The Cygnus scheme meeting occurs on the 18th of September, where the Cygnus shareholders will vote.

Speaker #2: Hopefully in favor of the scheme. Now, we do have both boards of directors strongly recommending that our shareholders vote in favor. We've had proxy advisors.

Speaker #2: Glass Lewis, ISS, and Perk are all on the CAML side, suggesting that shareholders vote in favor as well. The scheme booklet I mentioned earlier sets out all of the advantages and disadvantages of the scheme.

Speaker #2: I urge any Cygnus shareholders listening today to have a careful look at that and vote accordingly. So, assuming this completes in October, what we really end up with is more copper exposure in the business, in a tier-one jurisdiction.

Speaker #2: So really populating that area of the pipeline between the early-stage exploration we've spoken about and the operations that are underpinning this excellent set of financial results.

Gavin Ferrar: Really populating that area of the pipeline between the early-stage exploration we have spoken about and the operations that are underpinning this excellent set of financial results. If we move to the next slide, please, just a reminder to our shareholders of what we are buying. The Chibougamau is a high-grade copper-gold suite of assets in the Tier 1 jurisdiction. There are effectively five copper-gold deposits, most of which are located within 30 kilometers of an existing processing facility. This processing facility will need significant refurbishment and upgrading, but it is a brownfields opportunity for us that accelerates permitting and timetable to production there. Cygnus had started a preliminary economic assessment that has been underway, and they needed to do quite a lot of drilling under the Australian rules to get a lot of the resources into the PEA. We will continue with that drilling program.

Speaker #2: So if we move to the next slide, please. Just a reminder to our shareholders of what we're buying: Shabir Gamo is a high-grade copper-gold suite of assets in a tier-one jurisdiction.

Speaker #2: There are effectively five copper-gold deposits, most of which are located within 30 kilometers of an existing processing facility. Now, this processing facility will need significant refurbishment and upgrading, but it is a brownfields opportunity for us that sort of accelerates permitting and the timetable to production there.

Speaker #2: Cygnus had started a preliminary economic assessment; that's been underway. And they needed to do quite a lot of drilling under the Australian rules to sort of get a lot of the resources into the PEA.

Speaker #2: We will continue with that drilling program. We'll also continue with that PEA study, which will probably be published, if all goes well, sometime early next year.

Gavin Ferrar: We will also continue with that PEA study, which will probably be published, if all goes well, sometime early next year. Not only have we got these five deposits, but there is also significant exploration potential if we go to the next slide. This is a district that has produced over 1 million tons of copper and 3.5 million ounces of gold historically. We really are in elephant country here. If you look at the, I guess there are five plus Copper Rand on the left-hand side, that is the five core assets that form that 6.4 million ton measured and indicated resource. That 18-kilometer strike length, all of those red arrows that you can see on that chart show you where the mineralization is either open at depth or along strike. There is a lot of exploration potential there.

Speaker #2: Not only have we got these five deposits, but there's also significant exploration potential if we go to the next slide. This is a district that's produced over a million tons of copper and three and a half million ounces of gold historically.

Speaker #2: So we really are in elephant country here. And if you look at the, I guess there's five plus copper Rand. On the left-hand side, that's the sort of five core assets that form that 6.4 million tonne measured and indicated resource.

Speaker #2: But that 18-kilometer strike length, all of those red arrows that you can see on that chart show you where the mineralization is either open at depth or along strike.

Speaker #2: So, there's a lot of exploration potential there. There's a large existing data set that the Cygnus team has been analyzing, and we will continue with the same team in Canada.

Gavin Ferrar: A large existing data set that the Cygnus team has been analyzing, and we will continue with the same team in Canada, remember. We are not looking to change the team up at all in Canada. We will have a lot of continuity in terms of exploration knowledge and driving the exploration potential of the suite of tenements that Cygnus has pulled together. Not to mention that Cygnus itself has actually increased that resource base by 78%, just to show you what potential actually exists with this suite of tenements that exist out in Canada. Key dates there, as I said, 2 September for our shareholders, 18 September for any Cygnus shareholders that are listening in today. Final slide in terms of our outlook for the year.

Speaker #2: Remember, we're not looking to change the team at all in Canada, so we'll have a lot of continuity in terms of exploration knowledge and driving the exploration potential of this suite of tenements that Cygnus has pulled together.

Speaker #2: Not to mention that Cygnus itself has actually increased that resource base by 78%, just to show you what potential actually exists with this suite of tenements that exist out in Canada.

Speaker #2: So, key dates there, as I said: 2nd of September for our shareholders, and 18th of September for any Cygnus shareholders that are listening in today.

Speaker #2: Final slide on, in terms of our outlook for the year. As I said a couple of times now, we're still benefiting from very good prices, both copper and zinc, and we expect that to continue for the rest of the year.

Gavin Ferrar: As I said a couple of times now, we are still benefiting from very good prices, both copper and zinc, and we expect that to continue for the rest of the year. That is going to drive good revenue as we look to achieve our 2026 full-year guidance, and we are on track to achieve that both at Kounrad and at Sasa. Spoken about the shareholder votes in support of the Cygnus acquisition. One thing I did not mention earlier is that we have a Toronto Stock Exchange listing application underway, also in support of the Cygnus transaction. That has gone particularly well. We are waiting for a conditional approval from the Toronto Stock Exchange within the next few weeks, certainly in time for the closing of that transaction.

Speaker #2: And that is going to drive good revenue as we look to achieve our 2026 full-year guidance. We're on track to achieve that, both at Kounrad and at Sasa.

Speaker #2: I've spoken about the shareholder votes in support of the Cygnus acquisition. One thing I didn't mention earlier is that we have a TSX listing application underway.

Speaker #2: Also, in support of the Cygnus transaction, that's gone particularly well. We're waiting for a conditional approval from the TSX within the next few weeks.

Speaker #2: Certainly in time for the closing of that transaction. And then all of the technical guys in our management team—which is the three of us plus others—are all waiting on tenterhooks for those assay results to come out of Kazakhstan, because the core certainly looks interesting.

Gavin Ferrar: All of the technical guys in our management team, which is the three of us plus others, all waiting on tenterhooks for those assay results to come out of Kazakhstan, because the core certainly looks interesting, but the proof of the pudding is still awaited. Looking for that. In terms of capital allocation going forward, 8p dividend, we are very pleased to announce that today, 40% of our adjusted free cash flow. CapEx of both operations moving forward now is really just going to be sustaining CapEx. Guidance, as Louise said, we are looking to land within that USD 14.5 to 17.5 million range.

Speaker #2: But the proof of the pudding is still awaited, so we're looking for that. And then, in terms of capital allocation going forward, AP dividend—we're very pleased to announce that today—40% of our adjusted free cash flow.

Speaker #2: Capex at both operations moving forward now is really just going to be sustaining capex. Guidance, as Louise said, we're looking to sort of land within that 14 and a half to 17 and a half million dollar range.

Speaker #2: Cash on the balance sheet of $97.2 million provides us with a huge amount of optionality going forward, both in terms of investment into exploration, at Kazakhstan, Scotland, and Canada.

Gavin Ferrar: Cash on the balance sheet of USD 97.2 million provides us with a huge amount of optionality going forward, both in terms of investment into exploration, both Kazakhstan, Scotland and Canada, and at the same time providing our shareholders with look-through value in terms of capital returns there. A lot of flexibility and optionality now moving forward with CAML and the cash generation underpinning all of our growth ambitions, I think we are set up for a really good future for the business. Thank you very much all for attending and listening today. I think it is time to hand over to the floor now for questions.

Speaker #2: And at the same time, providing our shareholders with a look-through value in terms of capital returns there. So, a lot of flexibility and optionality now moving forward with CAML and cash generation underpinning all of our growth ambitions.

Speaker #2: I think we have set up for a really good future for the business, so thank you very much to all for attending and listening today. I think it's time to hand over to the floor now for questions.

Speaker #1: And thank you very much, sir. Ladies and gentlemen, if you'd like to ask an audio question, please press star one on your telephone keypad.

Operator: Thank you very much, sir. Ladies and gentlemen, if you would like to ask an audio question, please press star 1 on your telephone keypad, and just make sure that your line is unmuted from your equipment. That is star 1 for questions. Our first question today is coming from Laura Chan calling from RBC. Please go ahead, Laura. Your line is open.

Speaker #1: And just make sure that you're not muted and check your equipment. That is star one for questions. Our first question today is coming from Laura Chan-Cloud from RBC.

Speaker #1: Please go ahead, Laura. Your line is open.

Laura Chan: Hi. Morning, Gavin, Louise. Congrats on the results. Just one question from my side, mainly on capital allocation. The H1 payout was at the midpoint of your policy. With the transaction completing soon and Chibougamau development spend ahead, how should we think about the H2 payout ratio, and does your capital allocation framework change structurally post-close? I guess just a related question is how should we think about your CapEx profile at group level over the next 12 to 24 months with that development spend likely to come in?

Speaker #3: Hi, morning. Morning, Gavin. Morning, Louise. Congrats on the results. Just one question from my side, mainly on capital allocation. The H1 payout was at the midpoint of your policy.

Speaker #3: And with the transaction completing soon, and Shapur Gamo development spend ahead, how should we think about the H2 payout ratio, and does your capital allocation framework change structurally post-close?

Speaker #3: And I guess just a related question is, how should we think about your CapEx profile on a group level over the next, kind of, 12 to 24 months? Or is that development spend likely to come in?

Speaker #2: Okay, thanks, Laura. So, in terms of the dividend, we made the decision a year ago as a board to get the dividend back into policy.

Gavin Ferrar: Okay. Thanks, Laura. In terms of the dividend, we made the decision a year ago as a board to get the dividend back into policy. I think that provides us with the flexibility to finance both capital returns and also our growth ambitions. The 8p dividend is, as I said, right in the middle of the range of that. I think apart from you, Laura, I think it beat mostly the Street consensus expectations. Look, I think the same remains. I think if we continue to benefit from really good commodity prices, that will give us a little more firepower to keep the dividend towards the mid to upper end of that range. At the same time, we will have a larger shareholder base if the Cygnus transaction closes.

Speaker #2: And I think that provides us with the flexibility to finance both capital returns and also our growth ambitions. And the AP dividend, as I said, is right in the middle of the range of that.

Speaker #2: And I think, apart from you, Laura, it would be mostly the street consensus expectation. But look, I think the same remains.

Speaker #2: I think if we continue to benefit from really good commodity prices, that'll give us a little more firepower to keep the dividend towards the mid to upper end of that range.

Speaker #2: But at the same time, we will have a larger shareholder base if the Cygnus transaction closes. So there will necessarily be some dilution on a per-share basis of that dividend moving forward.

Gavin Ferrar: There will necessarily be some dilution on a per share basis of that dividend moving forward. We will look to continue to pay a dividend, and depending on what we end up doing with Chibougamau and the timelines there, we would have to flex within that policy in order to finance the development there. In terms of development CapEx, the second half of your question. Look, I think Louise has set out quite well what the rest of the year is for the Kazakh exploration, and it is all set out in this presentation as well. Chibougamau, we have got a fairly good handle, having spoken to management there over the last few months of what we are going to be spending. I do not think it is going to be an enormous amount of money for the first year. Certainly, we are going to be completing drilling programs.

Speaker #2: But we will look to continue to pay a dividend, and depending on what we end up doing with Shuak and the timelines there, we'd have to flex within that policy in order to finance the development there.

Speaker #2: So, in terms of development capex—the second half of your question—look, I think Louise has set out quite well what the rest of the year is for the Kazakh exploration.

Speaker #2: And it's all set out in this presentation as well. Shapur Gamo—we've got a fairly good handle, having spoken to management there over the last few months, of what we're going to be spending.

Speaker #2: So I don't think it's going to be an enormous amount of money for the first year. Certainly, we're going to be completing drilling programs, and we're going to be completing that PEA.

Gavin Ferrar: We're going to be completing that PEA and looking at options to accelerate into a DFS. It's really once that DFS starts that the capital, if you want to call it CapEx really, development expenditure will start ramping up, probably into the latter half of 2027 and into 2028. I don't know if that answers all of your questions.

Speaker #2: And looking at options to accelerate into a DFS, and it's really once that DFS starts that the capital—if you want to call it capex—really will start. Development expenditure will start ramping up probably into the latter half of 2027 and into 2028.

Speaker #2: So I don't know if that answers all of your questions. Just let me know if it doesn't.

Laura Chan: Okay.

Gavin Ferrar: Just let me know if it doesn't.

Speaker #3: Yeah, no, that's fairly clear. Thanks a lot. I'll hand it over.

Laura Chan: Yeah, no, that's fairly clear. Thanks a lot. I'll hand it over.

Gavin Ferrar: Thank you very much.

Speaker #2: Thank you very much.

Laura Chan: back to the queue.

Speaker #1: Thank you for your questions, Laura. Next, we'll be going to Nick Chalmers of Cavendish. Please go ahead.

Operator: Thank you for your questions there, Laura Chan. Next, we will be going to Nick Chalmers of Cavendish. Please go ahead.

Operator: Thank you for your questions there, Laura. Next, we will be going to Nick Chalmers of Cavendish. Please go ahead.

Nick Chalmers: Hope you are well. Improved performance at Sasa in H1. Obviously, you are still in the midst of the operational improvement program. Is there much more in the way of cost-cutting that is going to be undertaken there, or is it more about optimization of the underlying performance going forward? How should we be thinking about per ton mining costs there in H2? Do you think there is more improvement to come, or is the H1 level the sort of normalized level we should be thinking of going forward?

Speaker #4: Hope you're well. We've performed SASA in the first half. Obviously, you're still in the midst of the operational improvement program. Is there much more in the way of cost-cutting that's going to be undertaken there?

Speaker #4: Or is it more about optimization of the underlying performance going forward? And how should we be thinking about per-ton mining costs there in the second half?

Speaker #4: Do you think there's more improvement to come, or is the H1 level the sort of normalized level we should be thinking of going forward?

Speaker #2: Look, as I said, we're continuing to try and improve there, Nick. So I think probably a conservative approach would be to keep those costs flat.

Gavin Ferrar: Look, as I said, we are continuing to try and improve there, Nick. I think probably a conservative approach would be to keep those costs flat through the year if I were you. We are looking for more operational efficiencies around planning and making sure that we are not presented with any sort of geological surprises, which I think is the message we gave the market about a year ago. We were struggling a little bit with grade control and with drill density informing the planners and hence the miners. A lot of investment into that has been made just to try to make that a lot more efficient. As I said earlier, there are a few mining efficiencies that are coming through, but I think a lot of the cost comes there. It is an interesting one because we obviously always been a sort of cost-conscious business.

Speaker #2: Through the year, if I were you, we are looking for more operational efficiencies—efficiencies around planning, and making sure that we don't do it and not present it with any sort of geological surprises—which I think is the message we gave the market about a year ago.

Speaker #2: We were struggling a little bit with grade control and with drill density informing the planners, and hence the miners. So, a lot of investment has gone into that.

Speaker #2: This has been done just to try and make that a lot more efficient. And then, as I said earlier, there are a few mining efficiencies that are coming through, but I think a lot of the cost—it's an interesting one, because we've obviously always been a sort of cost-conscious business.

Gavin Ferrar: But in the inflationary environment that we are operating in right now, it does make it quite difficult to reduce the cost significantly. So we are kind of fighting a little bit of a rising tide, but as much as we can at the same time introducing all of the initiatives and savings there as well. Next steps, really, once we get a firmer grip on that asset, we would be picking it apart again and seeing if we can go beyond 2034 and looking at what the mine plan could be moving forward if we inform ourselves with a little more drilling as well. So, quite a way to go yet, but we are pleased to be seeing the benefits of some of those initiatives now reflected in these results.

Speaker #2: Operating in right now, it does make it quite difficult to reduce the costs significantly, so we're kind of fighting a little bit of a rising tide.

Speaker #2: But as much as we can, at the same time introducing all of the initiatives and savings there as well. So, next steps really, once we get a firmer grip on that asset, we'd be picking it apart again and seeing if we can go beyond 2034, and looking at what the mine plan could be moving forward if we inform ourselves with a little more drilling as well.

Speaker #2: So, quite a way to go yet, but we are pleased to be seeing the benefits of some of those initiatives now reflected in these results.

Speaker #4: One more question from me. I appreciate Shapur Gamo, at least until the transaction has got over the line. But, I mean, assuming that all closes on time, what should we be thinking of in terms of timing of that PEA and the budget to get there?

Nick Chalmers: One more question, if I may. Appreciate for Chibougamau until transaction has gone through the line. Assuming it all closes on time, what should we be thinking of in terms of timing of that PEA and budget to get there?

Speaker #2: Well, in terms of timing, as I said earlier, we are probably looking at doing a little bit more drilling. I think Cygnus continues with the drill rigs on site anyway.

Gavin Ferrar: Well, in terms of timing, as I said earlier, we are probably looking at doing a little bit more drilling. I think Cygnus continues with the drill rigs on site anyway. So we are just going to be picking up that program and pushing it forward into the middle of next year. Then once we have got a handle on those resources, we could drive that into a PEA that has been run in parallel. So we are probably looking at, I do not know what we reckon to be Q2, Q3 next year.

Speaker #2: So we're just going to be sort of picking up that program and pushing it forward into the middle of next year. And then once we've got a handle on those resources, we could drive that into a PEA that's been run in parallel.

Speaker #2: So we're probably looking at, sort of, I don't know whether we're going to be Q2 or Q3 next year.

Speaker #3: Yeah, some might depend on—one of the things we've talked about is, obviously, you can make changes to your approach after a PEA, but we want the PEA to reflect as much as it can, at this stage, what we want to do.

Louise Wrathall: Yeah. Some might depend on. One of the things we have talked about is, obviously you can make changes to what your approach after a PEA, but we want the PEA to reflect as much as it can at this stage what we want to do. So one of the factors will be-

Speaker #3: So, one of the factors will be some trade-off studies that we plan to do, where there are some obvious questions we've asked throughout the process.

Gavin Ferrar: Yeah

Gavin Ferrar: Yeah.

Louise Wrathall: some trade-off studies that we plan to do, where there is some obvious questions we have asked throughout the process. Would we go about that aspect like that? Would we change something else? It will be a little bit dependent on those kind of isolated pieces of work that we might do to feed into a PEA as well.

Louise Wrathall: Some trade-off studies that we plan to do, where there is some obvious questions we have asked throughout the process. Would we go about that aspect like that? Would we change something else? It will be a little bit dependent on those kind of isolated pieces of work that we might do to feed into a PEA as well.

Speaker #3: Would we go about that aspect like that? Would we change something else? So it'll be a little bit dependent on those kind of isolated pieces of work that we might do to feed into a PEA as well.

Speaker #2: So there's an opportunity for us to sort of pause, step back, and have a look at different approaches, and we've already started doing that in conjunction with the Canadian management team of Cygnus.

Gavin Ferrar: There is an opportunity for us to sort of pause, step back, and have a look at different approaches. We have already started doing that in conjunction with the Canadian management team of Cygnus. We are trying, as best we can, to hit the ground running in September. There may well be some reflection on the way forward there. In terms of budget, I know that the finance team has been working together with the guys in Canada again to set out what we are going to be doing. It is fairly modest for 2027, at least H1 2027. Just finance probably 2 to 3 rigs plus the G&A there and the study works.

Speaker #2: So we're trying as best we can to hit the ground running in September, but there may well be some reflection on the way forward there.

Speaker #2: And in terms of budget, I know that the finance team has been working together with the guys in Canada again to set out what we're going to be doing.

Speaker #2: And it's fairly modest for 2027, at least for the first half of 2027—just finance probably two to three rigs plus the G&A there and the study work.

Speaker #3: Yeah, I mean, again, it depends on what we choose to do, but we will be, probably, in terms of the drilling and the kind of run of the business, we'd certainly be talking millions rather than tens of millions.

Louise Wrathall: Yeah. Again, it depends on what we choose to do, but we will be probably, in terms of the drilling and the kind of running of the business, we would certainly be talking millions rather than tens of millions.

Speaker #2: Yeah, yeah.

Gavin Ferrar: Yeah.

Louise Wrathall: Yeah.

Speaker #4: Thanks.

Nick Chalmers: Thanks.

Speaker #1: Thank you, Mr. Chalmers. Next, we will go to Richard Hatch of Berenberg. Please go ahead, Richard. Your time is over. Thank you.

Operator: Thank you, Mr. Chalmers. Next, we will be going to Richard Hatch of Berenberg. Please go ahead, Richard. Your line is open. Thank you.

Speaker #5: Yeah, good morning. Thanks for the call. Just two questions. The first one is on strategy. So obviously, with Shapur Gamo being a bit longer-dated in terms of volumes, how should we think about possibilities for additional sort of near-producing transactions?

Richard Hatch: Yeah, morning. Thanks for the call. Just two questions. The first one is just on strategy. Obviously with Chibougamau being a bit longer dated in terms of volumes, how should we think about possibilities for additional sort of near-producing transactions, or just looking at your portfolio as it stands at the moment with the exploration potential, the FLAG, and also perhaps some improvements at some of the existing operations, should we view that the potential for a near-producing additional asset is probably lower than the more probable? The second one is just on working capital. It was just very well controlled. Again, just a small sort of increase in working cap, but should we think about any working cap movements in the H2? Thanks.

Speaker #5: I mean, just looking at your portfolio as it stands at the moment—with the exploration potential that you flag, and also perhaps some improvements at some of the existing operations—should we view that the potential for a near-producing additional asset is probably lower than more probable?

Speaker #5: And the second one is just on working capital. I mean, it was just very well controlled again—just a small sort of increase in working cap—but should we think about any working cap movements in the second half?

Speaker #5: Thanks.

Speaker #2: Okay, I'll take the first question and handle it. Thanks, Richard. So, in terms of strategy, look, I think if the Cygnus transaction closes, then clearly our focus for the next 12 months is really going to be integration of that asset.

Gavin Ferrar: Okay. I will take the first question and hand another one to Louise. Thanks, Richard. In terms of strategy, look, I think, if the Cygnus transaction closes, then clearly our focus for the next 12 months is really going to be integration of that asset. Setting out the direction of travel to get through to a feasibility study and a production date. So that is the next 12 months is going to take up a lot of our focus and management time on that. We have got a pipeline of opportunities that we have always sort of kept warm in the background. Let us assume that Cygnus does close. I cannot see us doing anything else significant for the next 12 months.

Speaker #2: Setting up the direction of travel to get through to a feasibility study and a production date—that's the next 12 months. It's going to take up a lot of our focus and management time on that.

Speaker #2: So, we've got a pipeline of opportunities that we've always sort of kept warm in the background. But let's assume that Cygnus does close.

Speaker #2: So, I can't see us doing anything else significant for the next 12 months. But once we've got that set up and running, and we're happy with the direction of travel and we've got a firm focus on what we're looking to achieve and a timeline to production there, then we may or may not have a look at something else.

Gavin Ferrar: Once we have got that set up and running and we are happy with the direction of travel, and we have got a firm focus on what we are looking to achieve and a timeline to production there, then we may or may not have a look at something else. It depends on what comes along. As you know, this is not an easy exercise, BD in the junior mining space, and particularly in the base metal space. We always say never say never. We do have that flexibility on the balance sheet. We have proposed an all-share transaction so that we can have the flexibility to finance our growth ambitions. I am not saying we are going to go and spend a huge amount of money on a new operating asset.

Speaker #2: And it depends on what comes along. As you know, this is not an easy exercise—BD in the junior mining space, and particularly in the base metal space. But we always say, never say never.

Speaker #2: We do have that flexibility on the balance sheet. So, we've proposed an all-share transaction so that we can have the flexibility to finance our growth ambitions.

Speaker #2: And I'm not saying we're going to go and spend a huge amount of money on a new operating asset, but if an opportunity arose for a merger with someone that's operating, or close to operations, then clearly we'd look at it if it made sense for the shareholders.

Gavin Ferrar: But if an opportunity arose for a merger with someone that is operating or close to operations, then clearly we would look at it if it made sense for the shareholders. But I cannot see us doing anything significant in the next 12 months.

Speaker #2: But I can't see us—yeah, I can't see us doing anything significant in the next 12 months.

Speaker #3: On the working capital, yeah. On the working capital, I suppose a couple of things, just off the top of my head, would be on the inventory side—we'll still push harder at SASA.

Louise Wrathall: On the working capital, Richard. Yeah.

Gavin Ferrar: Yeah, please.

Richard Hatch: Yeah, please.

Louise Wrathall: On the working capital, I suppose a couple of things just top of my head would be, on the inventory side, we will still push harder at Sasa. We have done a lot of work and a lot of analysis. I think it had got a bit too high, the inventory. But we have also put a system in place to better analyze what we need, how quick items can turn over, how long it takes to reorder certain items, making sure we are not being overcautious, but ensuring that we have got key items to ensure production continues. So that is an area we will still carry on focusing on. The other thing off the top of my head that you might see is in terms of payables, the tax aspect in Kazakhstan. So it looked quite high that we were owed money back from VAT in terms of receivable.

Speaker #3: We've done a lot of work and a lot of analysis. I think the inventory had got a bit too high, but we've also put a kind of system in place to better analyze what we need, how quickly items can turn over, how long it takes to reorder certain items—making sure we're not being overcautious, but ensuring that we've got key items to ensure production continues.

Speaker #3: So that's an area we'll still carry on focusing on. The other thing, off the top of my head, that you might see is in terms of payables—the tax aspect in Kazakhstan.

Speaker #3: So it looked quite high that we were owed money back from VAT in terms of receivable. We've actually got, I think, we've got a couple of million back since the 30th of June, but then on the sort of payable side, there was that aspect I mentioned about CIT.

Louise Wrathall: I think we have got a couple of million back since 30 June. Then on the payable side, there was that aspect I mentioned about CIT. You end up paying your tax on the profits from the previous year, but obviously commodity price has been higher and the copper price in particular. We will end up owing money on CIT in cash terms by the end of the year. We have decided we are going to pay that in effectively equal installments from August through to December. By the time you see those accounts in March, then that will be more normalized as well. Those are the three aspects in terms of receivables, VAT, payables, CIT, and then keep pushing on the inventory aspect at Sasa as well.

Speaker #3: So, you end up paying your tax on the profits from the previous year, but obviously, commodity prices have been higher—in the copper price in particular.

Speaker #3: So we'll end up owing money on CIT in cash terms by the end of the year. So we've decided we're going to pay that in, kind of, effectively equal installments from August through to December.

Speaker #3: So by the time you see those accounts in March, that will be more normalized as well. So those are the three aspects in terms of receivables, VAT, payables, CIT, and then keep pushing on the inventory aspects at SASA as well.

Richard Hatch: Very clear. Well done for keep pushing at it. Thanks for your time.

Speaker #5: Very clear. Well done for keeping at it. Thanks for your time.

Speaker #1: Thanks, Richard.

Gavin Ferrar: Thanks, Richard.

Louise Wrathall: Thanks, Richard.

Speaker #3: Thanks, Richard.

Louise Wrathall: Thanks, Richard.

Speaker #1: Thank you, sir. Ladies and gentlemen, once again, if you have any questions or follow-ups, please press star one at this time. Please pause just a moment.

Operator: Thank you, sir. Ladies and gentlemen, once again, if you have any questions or follow-ups, please press star one at this time. Pause just a moment. We do not appear to have any further questions coming in. Mr. Ferrar, I will turn the call back over to you for any additional or closing remarks. Thank you.

Speaker #1: We do not appear to have any further questions coming in. Mr. Ferrar, I'll return the call back over to you for any additional or closing remarks.

Speaker #1: Thank you.

Speaker #2: Thanks, George. So, look, thanks everyone for joining us this morning to attend this presentation of our results. If any other questions come up, please, you've got Richard's address and details on the slide there.

Gavin Ferrar: Thanks, George. Thanks everyone for joining us this morning to attend this presentation of our results. If any other questions come up, please, you got Richard's address and details on the slide there. Please direct them there, and we will do our best to get back to whoever asked questions as quickly as possible. Lastly, I will say, again, just to reiterate, there are a couple of key votes coming up. Please do exercise your right to vote. Thanks very much for that and once again for your continued support of our business. Thanks very much and good morning.

Speaker #2: Please direct them there, and we'll do our best to get back to whoever has questions as quickly as possible. Lastly, I'll say again, just to reiterate, there are a couple of key votes coming up.

Speaker #2: Please do exercise your right to vote. So thanks very much for that. And once again, for your continued support of our business, thanks very much and good morning.

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Q2 2026 Central Asia Metals Earnings Call

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