Q2 2026 Solidcore Resources PLC Earnings Call

September 9, 2026

Speaker #1: So in that case, just please stand by, keep yourselves muted. I will let you know on the chat there on the platform once we're live.

Operator: So in that case, just please stand by, keep yourselves muted. I will let you know on the chat there on the platform once we are live. Best of luck. Thank you.

Speaker #1: Best of luck. Thank you.

[Company Representative] (Solidcore): Dear ladies and gentlemen, welcome to Solidcore Resources H1 2026 financial results webcast. Today on the call we have Vitaly Nesis, the CEO, and Evgenia Onuschenko, the CFO. We will start the presentation with the key financial figures, then proceed to tender offer discussion, and then we will provide more details on the financial results. You can submit your text questions on the webcast platform. Vitaly, over to you.

Kirill Kuznetsov: Dear ladies and gentlemen, welcome to Solidcore Resources H1 2026 Financial results webcast. Today on the call we have Vitaly Nesis, the CEO, and Evgenia Onuschenko, the CFO. We will start the presentation with the key financial figures, then proceed to tender offer discussion, and then we will provide more details on the financial results. You can submit your text questions on the webcast platform. Vitaly, over to you.

Speaker #2: Dear ladies and gentlemen, welcome to Solid Core Resources, healthier 2026 financial results webcast. Today on Q1, we call we have Vital Analysis, the CEO and Evgenia Onuschenko, the CFO.

Speaker #2: We will start the presentation with key financial figures, then proceed to tender offer discussion, and then we'll provide more details on the financial results.

Speaker #2: You can submit your text questions on the webcast platform. Vitaly, over to you.

Speaker #3: Thank you very much. Ladies and gentlemen, today we have a special event because we will combine discussions of two news items in one Q&A session.

Vitaly Nesis: Thank you very much, ladies and gentlemen. Today we have a special event because we will combine discussions of two news items in one Q&A session. The first one is obviously the regular financial results presentation for the H1 of 2026, and the second one is the explanation of the tender offer for Solidcore Resources shares that we have announced after the close of trading yesterday. Let us proceed. Next page, please. In terms of the results for the H1 of 2026, obviously, we were helped a lot by very positive macro environment and strong operational performance. Although some disruptions in the supply chain of our finished product have impacted our free cash flow. But overall payable production was 210,000 ounces, adjusted EBITDA $641 million, and underlying net earnings, $465 million.

Speaker #3: The first one is obviously the regular financial results presentation for the first half of 2026, and the second one is the explanation of the tender offer for Solid Core Resources shares that we have announced after the close of trading yesterday.

Speaker #3: So let's proceed. Next page, please. In terms of the results for the first half of 2026, obviously we were helped a lot by very positive macro environment and strong operational performance.

Speaker #3: Although some disruptions in the supply chain of our finished product have impacted our free cash flow. But overall, payable production was 210,000 ounces, adjusted EBITDA 641 million, and the underlying net earnings 465 million.

Speaker #3: Although these numbers are substantially higher than last year's figures, but this is to a large degree represents a very low base that the company had last year, when the sales of concentrate from Brazil were impacted very heavily by the problems at the Russian PAX facility.

Vitaly Nesis: All those numbers are substantially higher than last year's figures, but this is due largely a degree represents a very low base that the company had last year when the sales of concentrate from Kyzyl were impacted very heavily by the problems at the Russian POX facility. In terms of cost performance, we maintained the levels achieved last year despite a big jump in payable production. Now, this is the reflection of pretty strong domestic inflation in Kazakhstan and specifically the deepening of the pit at Kyzyl. Overall, free cash flow of $243 million represented a big jump compared with the previous year. But again, the negative impact of disruptions in the flow of material from Russia to Kazakhstan had its impact. Next page, please. Now we will actually turn to tender offer because we believe this is more important and requires more detailed explanation. Next page.

Speaker #3: In terms of cost performance, we maintained the levels achieved last year. Despite a big jump in payable production, this is the reflection of a pretty strong domestic inflation in Kazakhstan and specifically the deepening of the bid at Brazil.

Speaker #3: Overall, free cash flow of 243 million represented a big jump compared with the previous year, but again, the negative impact of disruptions in the flow of material from Russia to Kazakhstan had its impact.

Speaker #3: Next page, please. Now we'll actually turn to tender offer because we believe this is more important and requires more detailed explanation. Next page. Let's start with the rationale for tender offer.

Vitaly Nesis: Let's start with the rationale for tender offer. Obviously, we have achieved significant surplus liquidity above operational and investment needs. There are several reasons for this change. First of all, the Ertis POX project is now fully funded after the completion of the transaction with the bank syndicate for project financing. Now we have high confidence in future stability of the financial position given positive macro environment and the continued progress in the construction of Ertis POX. Also, needless to remind you, we have committed to return capital to shareholders following the divestment of the Russian business more than two years ago. Now fundamentally, tender offer enables the company to return excess capital to shareholders through a market-based mechanism at a fair price. It is available to all eligible shareholders and provides shareholders with flexibility and choice.

Speaker #3: Obviously, we have achieved significant surplus liquidity above operational and investment needs. And there are several reasons for this change. First of all, the epox project is now fully funded after the completion of the transaction with the bank syndicate for project financing.

Speaker #3: We have high confidence in future stability of the financial position given positive macro environment and the continued progress in the construction of epox. And also, needless to remind you, we have committed to return capital to shareholders following the divestment of the Russian business more than two years ago.

Speaker #3: The fundamentally tender offer enables the company to return excess capital to shareholders through market-based mechanism at a fair price. It is available to all eligible shareholders and provides shareholders with flexibility and choice.

Speaker #3: More or less, we view this opportunity as a watershed for the shareholders of the company. Those shareholders who have stayed with Solid Core through thick and thin following the imposition of the sanctions on Polymetal International, Russian business in 2023, receive a unique opportunity to cash out.

Vitaly Nesis: More or less, we view this opportunity as a watershed for the shareholders of the company. Those shareholders who have stayed with Solidcore through thick and thin following the imposition of the sanctions on Polymetal International Russian business in 2023 receive a unique opportunity to cash out. Those people who actually subscribe and believe in the company's new strategy of aggressive growth through commodity and geographic diversification has opportunity to stay with the company for the long term and patiently wait for the realization of this strategy. So those who want to take cash and leave can do this. Those who want to stay with the company can do as they wish. Now, I would like to stress that this is a unique opportunity. It's a one-off transaction and does not represent the trend or the tradition.

Speaker #3: And those people who actually subscribe and believe in the company's new strategy of aggressive growth through commodity and geographic diversification has an opportunity to stay with the company for the long term and the patiently wait strategy.

Speaker #3: So those who want to take cash and leave can do this. Those who want to stay with the company can do as they wish.

Speaker #3: Now, I would like to stress that this is a unique opportunity and it's a one-off transaction, and it does not represent the trend or the tradition.

Speaker #3: It's again a watershed moment for the shareholder structure of the company. Next page, please. In terms of tender offer parameters, the offer size is fixed at 1.2 billion dollars.

Vitaly Nesis: It's again, a watershed moment for the shareholder structure of the company. Next page, please. In terms of tender offer parameters, the offer size is fixed at $1.2 billion. The share price is fixed at $11.66 per share. This price represents a 10% premium to the 30-day average volume-weighted price on the AIX. The duration of the offer is more or less one month. It closes on 12 October 2026. Importantly, if the offer is oversubscribed, there will be pro rata scaling such that all shareholders in the case of oversubscription will receive equal percentage of their tender offers satisfied with the fixed offer size. Importantly, the offer is fully funded with cash. The largest shareholder of the company, Maaden, and I personally as the CEO have signed irrevocable undertakings not to participate in the offer.

Speaker #3: The share price is fixed at 11.66 dollars per share. And this price represents a 10% premium to 30-day average weighted volume weighted price on the AAX.

Speaker #3: The duration of the offer is more or less one month. It closes on the 12th of October 2026. Importantly, if the offer is oversubscribed, there will be a pro-rata scaling in such that all shareholders in the case of oversubscription will receive equal percentage of their tender offers satisfied with the fixed offer size.

Speaker #3: Importantly, the offer is fully funded with cash. And the largest shareholder of the company, Maden, and me personally as the CEO have signed irrevocable undertakings not to participate in the offer.

Speaker #3: The company intends to seek shareholder approval for the increase in the major shareholders' shareholding resulting from the completion of the tender offer. I think it's all in terms of mechanics and conditions pretty self-explanatory.

Vitaly Nesis: The company intends to seek shareholder approval for the increase in the major shareholder shareholding resulting from the completion of the tender offer. I think it's all in terms of mechanics and conditions pretty self-explanatory. I would like to stress the fact that myself and Maaden stay on the shareholder register. We don't submit our shares to the offer. That's because we both subscribe to the long-term future of the company and believe that this future does not necessitate any cash distributions in the foreseeable future. Next, please. In terms of timeline, the offer opened today at 11:00 AM standard time. The EGM will be held on 30 September. The withdrawal cutoff date by which tender submissions must be withdrawn not to be considered final is 8 October. The offer closes at the closing of trading on 12 October.

Speaker #3: I would like to stress the fact that myself and Maden stay on the shareholder register. We don't submit our shares to the offer. That's because we both subscribe to the long-term future of the company and believe that this future does not necessitate any cash distributions in the foreseeable future.

Speaker #3: Next, please. In terms of timeline, the offer opened today at 11:00 a.m. Astana time. The EGM will be held on the 30th of September.

Speaker #3: The withdrawal cutoff date by which tender submissions must be withdrawn, not to be considered final, is 8th of October. The offer closes at the closing of trading on the 12th of October.

Vitaly Nesis: 14 October, we announce the results, and we expect to settle very promptly after the results announcement, maybe a couple of business days. In terms of EGM agenda, the items put out for voting, it is the market purchase of shares in connection with the tender offer. It is the treasury shares in connection with the tender offer. Both those resolutions are ordinary, and the whitewash waiver, Maaden is likely to breach 30% threshold of the voting rights. This will be an ordinary resolution to allow such a situation, and on this resolution, Maaden will not be able to vote. Next page, please. The results and shareholder structure post-offer will depend on the tender offer take-up. More or less, if the offer is fully subscribed, Maaden's share in Solidcore will rise to 41.3% of the company.

Speaker #3: 14th of October we announce the results, and we expect to settle very promptly after the results announcement, maybe a couple of business days. In terms of EGM agenda, the items put out for voting, it's the market purchase of shares.

Speaker #3: In connection with the tender offer, it's the treasury shares in connection with the tender offer, both those resolutions are ordinary and the whitewash waiver the Maden is likely to breach 30% threshold of the voting rights so this will be an ordinary resolution to allow such a situation and on this resolution Maden will not be able to vote.

Speaker #3: Next page, please. The results in shareholder structure post offer will depend on the tender offer takeup. More or less, if the offer is fully subscribed, Maden's share in Solid Core will rise to 41.3% of the company.

Speaker #3: And in this case, the management of the company will own 1% of shares outstanding. Next. Evgenia, I think you would probably be better equipped to talk about financial position post buyback.

Vitaly Nesis: And in this case, the management of the company will own 1% of shares outstanding. Next. Evgenia, I think you would probably be better equipped to talk about financial position post buyback.

Vitaly Nesis: In this case, the management of the company will own 1% of shares outstanding. Next. Evgenia, I think you would probably be better equipped to talk about financial position post buyback.

Speaker #2: Yes, sure. Thank you so much? Yeah, perfect. So in terms of the financial position post buyback, we expect to remain in a very sound financial position.

Evgenia Onuschenko: Yeah, sure. Thank you so much. Is it better now? Yeah, perfect. So in terms of the financial position post buyback, we expect to remain in a very sound financial position. First of all, we are going to retain the healthy liquidity profile, and we expect our leverage to remain below 0.3 net debt adjusted EBITDA. Also what is important, we do not expect the tender offer will impact our full year financial guidance. So we retain our production guidance of 540,000 ounces of gold in the both total cash cost and the sustaining cash guidance, and respectively, the capital expenditure guidance of $510 million. Next. How to participate in the tender offer. First of all, you need to open an account with an AIX trading member or an AIX CSD-recognized custodian and transfer your shares, if you have not done it yet.

Speaker #2: So first of all, we're going to retain the healthy liquidity profile. And we expect our leverage to remain below 0.3 net debt adjusted EBITDA.

Speaker #2: And also what's important, we do not expect the tender offer will impact our full-year financial guidance. So we retain our production guidance of 540,000 ounces of gold and both total cash cost and the loan sustaining cash guidance.

Speaker #2: And respectively, the capital expenditure guidance of 510 million dollars. Next. How to participate in the tender offer? So first of all, you need to open an account with AAX trading member or an AAX CSD recognized custodian and transfer your shares if you haven't done it yet.

Speaker #2: And then refer to your AAX trading member or AAX CSD recognized custodian to file an actual trading submission for a desired amount of shares that you want to sell.

Evgenia Onuschenko: And then refer to your AIX trading member or AIX CSD-recognized custodian to file an actual trading submission for the desired amount of shares that you want to sell. But the important thing before 12 October 2026. So you can withdraw your tender submission at any time, but before 8 October, after 8 October, your submission becomes irrevocable, and your share is going to be frozen. And please, we really recommend you to read the circular on our website. We also published the separate Q&A questionnaire on our website. Please, we ask you to read the information in this document. Let me walk you through what drove the numbers we have opened to this.

Evgenia Onuschenko: And then refer to your AIX trading member or AIX CSD-recognized custodian to file an actual trading submission for the desired amount of shares that you want to sell. But the important thing before 12th October 2026. So you can withdraw your tender submission at any time, but before 8th October, after 8th October, your submission becomes irrevocable, and your share is going to be frozen. Please, we really recommend you to read the circular on our website. We also published the separate Q&A questionnaire on our website. Please, we ask you to read the information in this document. Let me walk you through what drove the numbers we have opened to this.

Speaker #2: But importantly, before the 12th of October 2026. So you can withdraw your tender submission at any time, but before the 8th of October. After the 8th of October, your submission becomes irrevocable and your shares are going to be frozen.

Speaker #2: And please feel I mean, we really recommend you to read the circle on our website. We also published the separate Q&A questionnaire on our website.

Speaker #2: Please we ask you to read the information in this document. So let me walk you through what drove the numbers we have opened with Vitaly mentioned.

Evgenia Onuschenko: As Vitaly mentioned, we have achieved a strong set of financial results with net operating cash flow of $436 million against an outflow of $86 million a year ago and $243 million free cash flow. To put this performance in context, gold had a remarkable H1. On average, the LBMA gold price was around 4,700 an ounce. This is up 53% year-on-year. At the same time, we continued to experience a lot of pressure on our cash costs. Precisely, domestic inflation was approximately 10%. The ruble appreciated against the dollar by roughly 5% compared to a year ago. The H1 results were also marked by high mineral extraction tax rates and a new progressive regime introduced in 2026.

Speaker #2: We have achieved a strong set of financial results. With net operating cash flow of 436 million dollars against an outflow of 86 million dollars a year ago.

Speaker #2: And 243 million free cash flow. So to put this performance in context, gold had a remarkable first half on average the LBMA gold price was around 4,700 an ounce.

Speaker #2: This is up 53% year on year. But at the same time, we continued to experience a lot of pressure on our cash costs. Precisely, domestic inflation was approximately 10%.

Speaker #2: Then gay appreciated against the dollar by roughly 5% compared to a year ago. The first half year results were also marked by high mineral extraction tax rate.

Speaker #2: Under the new progressive regime introduced in 2026. Also importantly, Gazul's third-party concentrate processing recovered after the last year disruption. But most of the benefit came in the first quarter.

Evgenia Onuschenko: Also importantly, Gazov's third-party concentrate processing recovered after the last year disruption, but most of the benefit came in Q1 as the new Russian export regulations temporarily suspended direct shipments from our Moskovskiy processing facility in May and June. Our shipments resumed in July, and we are now running normally. Turning to production, at the mine level, output was essentially stable, only 2% below last year, which speaks to the operational consistency of both of our assets. Reported payable production at the same time was 210,000 ounces. Kyzyl production alone more than doubled, reflecting the recovery of ore processing at Amursk and the start of the new ore arrangement with Kyzyl node. At Varvara, output rose 17% on higher grades at the leaching circuit.

Speaker #2: As the new Russian export regulations temporarily suspended direct shipments from a most pressure excitation facility in May and June. Shipments resumed in July and we are now running normally.

Speaker #2: Turning to production, at the mind level, output was essentially stable. Only 3% below last year, which speaks to the operational consistency of both of our assets.

Speaker #2: Reported payable production at the same time was 210,000 ounces. Gazul production alone more than double reflecting the recovery of toll processing at a mosque.

Speaker #2: And the start of the new toll arrangement with Kazakh misnote. At Varvara, output rose 17% on higher grades at the Lichin circuit. As I mentioned, the new export regulations did cause a temporary buildup in metal inventories.

Evgenia Onuschenko: As I mentioned, the new export regulations did cause a temporary buildup in metal inventories to around 50,000 ounces of gold, while the shipments from Amursk were paused. But that inventory has been moving again since July. Next, please. Turning to revenue, group revenue reached almost $1 billion on higher production and the stronger gold price. Turning to adjusted EBITDA. The adjusted EBITDA increased to $641 million for six months, or to roughly $1.5 billion for the last 12 months ending 30 June. Kyzyl contributed most of it. The margin expanded to 66%, up from 47% a year ago. Breaking down the year-on-year movement, higher gold prices added $331 million and higher sales volumes contributed a further $170 million. On costs, total cash costs were $1,435 per ounce, essentially flat year-on-year and within our full-year guidance range.

Speaker #2: So around 50,000 ounces of gold. While the shipments from a mosque were paused. But this that inventory have been moving again since July. Next, please.

Speaker #2: So turning to revenue, group revenue reached almost 1 billion on higher production and the stronger gold price. Turning to adjusted EBITDA, so the adjusted EBITDA increased to 641 million dollars for six months.

Speaker #2: So or to roughly 1.5 billion for the last 12 months ending the 30th of June. And Kazul contributed most of it. The margin expanded to 66% up from 47% a year ago.

Speaker #2: Breaking down the year-on-year movement. So higher gold prices added 331 million dollars and higher sales volumes contributed to further 170 million dollars. On costs, total cash costs were 1435 dollars per ounce essentially flat year-on-year and within our full-year guidance range.

Speaker #2: The Kazul sales recovery actually helped bring cost down by spreading them over a much larger number of ounces. And that more than upset some real cost pressure that I mentioned before.

Evgenia Onuschenko: The Kyzyl sales recovery actually helped bring costs down by spreading them over a much larger number of ounces, and that more than offset some real cost pressure that I mentioned before, especially the increase in the mining tax rate from 7.5% to 11% under the new tax code. The ruble appreciation added further pressure on our local currency cost base. We expect the full-year total cash cost to remain within our $1,350 to $1,550 guidance range. All-in sustaining cash costs were down 13% to $1,912 per ounce. Beyond the TCC dynamics, the decline was helped by lower expenses per ounce, including sustaining expenses and also decrease in capitalized stripping. The full-year all-in sustaining cash cost guidance remained $1,850 to $2,050 per ounce. As you can see on the next slide, the dynamics played out differently by asset.

Speaker #2: Especially the increase in the mining tax rate from 7.5% to 11% under the new tax code. Then gay appreciation added further pressure on our local currency cost base.

Speaker #2: We expect the full-year total cash cost to remain within our 1350 to 1550 guidance range. All in sustaining cash costs were down 13% to 1912 dollars per ounce.

Speaker #2: Beyond the TCC dynamics, the decline was helped by lower expenses per ounce. Including sustaining expenses and also decrease in capitalized stripping. The full year-only sustaining cash cost guidance remained 1850 to 2050 per ounce.

Speaker #2: As you can see on the next slide, the dynamics played out differently by asset. So Kazul cost per ounce fell sharply down 9% on total cash cost and 13% on all in sustaining cash cost.

Evgenia Onuschenko: Kazakhmys cost per ounce fell sharply, down 9% on total cash cost and 13% on all-in sustaining cash cost, and this is on the back of their volume recovery. Varvara's cost moved the other way, up 27% and 22% respectively, reflecting cost inflation spread over a small ounce base. Turning to the balance sheet, net cash increased 41% to $653 million at the end of June, up from $464 million at year-end. That increase reflects $451 million of net operating cash flow, less $193 million of capital expenditure and $17 million of M&A and other investment outflows. Gross debt came down to $225 million at the end of June, and we ended the H1 with $878 million in cash and equivalents. However, as of 1 September, our net cash stood at $747 million, with cash and equivalents reaching $1.4 billion.

Evgenia Onuschenko: Kazakhmys cost per ounce fell sharply, down 9% on total cash cost and 13% on all-in sustaining cash cost, and this is on the back of their volume recovery. Varvara's cost moved the other way, up 27% and 22% respectively, reflecting cost inflation spread over a small ounce base. Turning to the balance sheet, net cash increased 41% to $653 million at the end of June, up from $464 million at year-end. That increase reflects $451 million of net operating cash flow, less $193 million of capital expenditure and $17 million of M&A and other investment outflows. Gross debt came down to $225 million at the end of June, and we ended the H1 with $878 million in cash and equivalents. However, as of 1st September, our net cash stood at $747 million, with cash and equivalents reaching $1.4 billion.

Speaker #2: And this is on the back of the volume recovery. And Varvara's cost moved the other way. Up 27% and 22% respectively. Reflecting cost inflation spread over a small ounce base.

Speaker #2: Turning to the balance sheet, net cash increased 41% to 653 million dollars at the end of June. Up from 464 million at year-end. That increase reflects that increase reflects 451 dollars million of net operating cash flow.

Speaker #2: And then less 193 million dollars of capital expenditure and 17 million of M&A and other investment outflows. So growth that came down to 225 million at the end of June.

Speaker #2: And we ended the half with 870 8 million dollars in cash and equivalents. However, as of the 1st of September, our net cash stood at 747 million.

Speaker #2: And with cash and equivalents reaching 1.4 billion dollars. So this increase reflecting the drawdown of the financing secured for the FP spokes. Which I'll come to shortly.

Evgenia Onuschenko: This increase reflecting the drawdown of the finances secured for the heap leach stocks, which I will come to shortly. On our debt profile, undrawn credit lines stood at $374 million as at the end of September, and this includes a new $100 million loan we secured that month to support the heap leach oxidation construction. Our average cost of debt was 5.5%, with the large majority of it on a floating rate. Turning to capital expenditure, we invested $193 million in the H1. This is up more than 50% year-on-year, and the increase was almost entirely about investments in the construction of the heap leach oxidation facility. We also invested in the gas piston power plant at Varvara and the new geological FRSC laboratory in Karaganda, which was commissioned today. Today or yesterday? Today.

Speaker #2: So on our debt portfolio on our debt profile and drawn credit lines stood at 374 million dollars at the end of September. And this includes a new 100 million loan be secured that month to support this pressure excitation construction.

Speaker #2: So our average cost of debt was 5.5% with a large majority of it on the floating rate. Turning to capital expenditure, so we invested 193 million in the first half.

Speaker #2: This is up 50 more than 50% year-on-year. And the increase was almost entirely about investments in the construction of the pressure excitation facility. So we also invested in the gas piston power plant at Varvara and the new geological fire sale laboratory in Karagandam which was commissioned today.

Speaker #2: Today or yes? Today.

Vitaly Nesis: Today.

Speaker #1: Today.

Evgenia Onuschenko: Sustaining capital at our operating mines was modest, $9 million at Kyzyl and $13 million at Varvara. This is mainly fleet and technical upgrades. Capitalized stripping came down to just $6 million at Kyzyl, because open pits continues its planned depletion, and we are preparing for the transition to the underground mining. To finish the financial part, we are reiterating our full year targets. As I mentioned before, the production is around 540,000 gold equivalent ounces and total cash cost and all-in sustaining cash cost within the existing ranges. The capital expenditure is expected to reach $510 million, of which $350 million is earmarked for the processing expansion facility. As we noted earlier, the guidance doesn't depend on the result of the tender offer, but remains highly sensitive to macro parameters.

Speaker #2: Sustaining capital at our operating mines was modest. 9 million dollars at Kazul. And 13 million dollars at Varvara. This is mainly fleet and technical upgrades.

Speaker #2: So capitalized stripping came down to just 6 million dollars at Kazul because open pit continues its plant depletion and we are preparing for the transition to the underground mining.

Speaker #2: To finish the financial part, so we are reiterating our full-year targets. So as I mentioned before, the production is around 540,000 gold equivalent ounces.

Speaker #2: And total cash cost and all in sustaining cash cost within the existing ranges. The capital expenditure is expected to reach 510 million of which 315 million is earmarked for pressure excitation facility.

Speaker #2: As we noted earlier, the guidance I mean, doesn't depend on the results of the tender offer. But remains highly sensitive to macro parameters. So for example, a 100 dollar move in the gold price affects EBITDA by around 46 million dollars.

Evgenia Onuschenko: For example, a $100 move in the gold price affects EBITDA by around $46 million and the free cash flow by around $47 million. We also have a high sensitivity to the movement in exchange rate, and this is especially important because the tenge continues to appreciate, and the 10 tenge to US dollar move has around $5 million impact on EBITDA. Next is the growth projects update. Vitaly, over to you. Would you like to continue?

Speaker #2: And the free cash flow by around 37 million dollars. We also have a high sensitivity to the movements in exchange rate. And this is especially important because the gear continues to appreciate.

Speaker #2: And the 10 10 gear to US dollar move has around 5 million dollar impact on EBITDA. Next is the growth projects update. Weekly over to you.

Speaker #2: You would like me to.

Vitaly Nesis: Yep. Thank you very much. In terms of growth projects update for Ertis POX, the key achievement over the H1 of the year was the completion of statutory permitting procedures. That includes both environmental approval and positive state expert review. Main process equipment is in the process of being delivered, and large scale construction of all buildings within the hydromet complex and infrastructure has proceeded. The pace of the CapEx is picking up. In general, so far, we have been able to contain the CapEx because a lot of it was committed very early, large scale equipment, bulk construction materials. We expect that next year, as we move into engineering disciplines such as piping, electrical, ventilation, the share of the construction work will increase.

Speaker #1: Yeah. Thank you very much. In terms of growth projects update, for year T spokes, the key achievement of the first half of the year was the completion of statutory permitting procedures.

Speaker #1: That includes both environmental approval and positive state expert review. Main process equipment is in the process of being delivered. And large scale construction of all buildings within the Hydromet complex and infrastructure has proceeded.

Speaker #1: The pace of the CAPEX is picking up. In general, so far we have been able to contain the CAPEX because a lot of it was committed very early.

Speaker #1: Large scale equipment, bulk construction, materials. We expect that next year, as we move into engineering disciplines, such as piping, electrical, ventilation, and the share of the construction work will increase.

Speaker #1: We likely will see a material trip in CAPEX and we expect that the CAPEX estimate for the box is likely to be updated when we deliver our full-year financial results in March.

Vitaly Nesis: We likely will see a material creep in CapEx, and we expect that the CapEx estimate for the POX is likely to be updated when we deliver our full year financial results in March. On Syrymbet, we are very close to completing the basic engineering. We are in the process of receiving binding offers for the supply of technological equipment, and we have started foundation works for auxiliary infrastructure. We currently expect that the final investment decision for the project will be made by the board in October. I personally have no doubt that the board, which visited the site 2 days ago, will support this project. Next, please. Several pictures from Ertis POX construction. As you can see, now it is a regular construction site with clear outlines of the main building and the overall structure of the site. The tail and storage facility is in the process of being constructed.

Speaker #1: On serum bet, we are very close to completing the basic engineering. We are in the process of receiving binding offers for the supply of technological equipment.

Speaker #1: And we have started foundation works for auxiliary infrastructure. We currently expect that the final investment decision for the project will be made by the board in October.

Speaker #1: I personally have no doubt that the board which visited the site two days ago will support this project. Next, please. Several pictures from epochs construction.

Speaker #1: As you can see, now it's a regular construction site. With clear outlines of the main building and the overall structure of the site. The telling storage facility is in the process of being constructed.

Speaker #1: Autoclave is in the design position. A main process equipment is currently sailing on a barge up Irtysh River to arrive to Pavlada in late October.

Vitaly Nesis: Autoclave is in a design position. Main process equipment is currently sailing on a barge up Irtysh River to arrive to Pavlodar in late October. Next page, please.

Speaker #1: Next page, please.

Evgenia Onuschenko: This completes the presentation.

Kirill Kuznetsov: This completes the presentation.

Speaker #3: This completes the presentation.

Vitaly Nesis: This completes the presentation. Well, thank you very much for your attention. We would be happy to answer the questions. Could you please provide any updates regarding OFAC and POX? Has the exemption linked to the construction progress been extended? We have received OFAC extension in May. It covers the next 12 months, so we will reapply to extend this next May. Do you expect the USD 1.2 billion tender offer to be substantially utilized, and have you received indications from any significant shareholders that they intend to participate? We have not talked to any shareholders about the tender offer. Obviously, this would have been highly sensitive and material market information. My personal expectation is that the tender offer will be fully utilized. What is Solidcore's current average cost of debt? I think it is around 6.5% US dollars.

Vitaly Nesis: This completes the presentation. Well, thank you very much for your attention. We would be happy to answer the questions. Could you please provide any updates regarding OFAC and POX? Has the exemption linked to the construction progress been extended? We have received OFAC extension in May. It covers the next 12 months, so we will reapply to extend this next May. Do you expect the $1.2 billion tender offer to be substantially utilized, and have you received indications from any significant shareholders that they intend to participate? We have not talked to any shareholders about the tender offer. Obviously, this would have been highly sensitive and material market information. My personal expectation is that the tender offer will be fully utilized. What is Solidcore's current average cost of debt? I think it is around 6.5% US dollars.

Speaker #1: This completes the presentation. Okay. Well, thank you very much for your attention. We would be happy to answer the questions. Could you please provide any updates regarding OFAC and PACS?

Speaker #1: Has the exemption link to the construction progress been extended? We have received OFAC extension in May. It covers the next 12 months. So we will reapply to extend this next May.

Speaker #1: Do you expect the 1.2 billion tender offer to be substantially utilized? And have you received indications from any significant shareholders that they intend to participate?

Speaker #1: We have not talked to any shareholders about the tender offer. Obviously, this would have been highly sensitive and material market information. My personal expectation is that the tender offer will be fully utilized.

Speaker #1: What is solid course current average cost of debt? I think it's around 6.5% US dollars.

Speaker #2: 6.5.

Evgenia Onuschenko: 6.5%.

Speaker #1: Could you please provide any updates on the Toktar acquisition? No updates presently. The transaction still has not been approved by the relevant government authorities.

Vitaly Nesis: Could you please provide any updates on the Tokhtar acquisition? No updates presently. The transaction still has not been approved by the relevant government authorities. The slowdown has largely been explained by the fact that a lot has happened in Kazakhstan over summer on the political stage. New constitution, new parliament, the changes in the government. We continue to work with authorities, and we will provide updates as any meaningful information appears. What are your plans in regards to other listings? Do you plan to return to LSE or to list elsewhere apart from AIX? Well, first of all, we continue to view AIX as our primary main listing. We became convinced in the process of thorough and lengthy analysis that returning to LSE is just not feasible given the complete lack of the bridge between the two exchanges. That is unlikely to change.

Speaker #1: The slowdown has largely been explained by the fact that a lot has happened in Kazakhstan over summer on the political stage. New constitution, new parliament, the changes in the government.

Speaker #1: We continue to work with authorities and we will provide updates as any meaningful information appears. What are your plans in regards to other listings?

Speaker #1: Do you plan to return to LSC or to list elsewhere apart from AIX? Well, first of all, we continue to view AIX as our primary main listing.

Speaker #1: We became convinced in the process of thorough and lengthy analysis that returning to LSC is just not feasible given the complete lack of the bridge between the two exchanges that is unlikely to change.

Speaker #1: We also looked at a variety of other exchanges pretty closely. Dubai, Hong Kong, New York, the general conclusion is secondary listing is not on the cards.

Vitaly Nesis: We also looked at a variety of other exchanges pretty closely. Dubai, Hong Kong, New York. The general conclusion is a secondary listing is not on the cards. The key constraint is the lack of infrastructural link between AIX and any other exchange. Frankly speaking, I don't see the point in listing until the company realizes its strategic goal of 1 million ounces production per year, which should come by 2030, 2031. So it may sound painful, but we don't see that another listing is realistic or actually that it makes any sense. Are we looking at other M&A projects that allow greater usage of FSPOCs in countries such as Kyrgyzstan? We have not looked at Kyrgyzstan. This jurisdiction has been deemed to be quite problematic from the point of view of country risk.

Speaker #1: The key constraint is the lack of infrastructural link between AIX and any other exchange. And frankly speaking, I don't see the point in listing until the company realizes its strategic goal of 1 million ounces production per year which should come by 2030, 2031.

Speaker #1: So it may sound painful but we don't see that another listing is realistic or actually that it makes any sense. Are we looking at other many projects that allow greater usage of Irtysh PACS in countries such as Kyrgyzstan?

Speaker #1: We have not looked at Kyrgyzstan. This jurisdiction has been deemed to be quite problematic from the point of view of country risk. We are looking for opportunities to source concentrates from all central Asian countries and we have received multiple think the real commercial activity will start once the PACS plant is closer to completion and we can actually show our potential counterparties the progress on the plant.

Vitaly Nesis: We are looking for opportunities to source concentrates from all Central Asian countries, and we have received multiple indications of interest. I think the real commercial activity will start once the POX plant is closer to completion, and we can actually show our potential counterparties the progress on the plant. So maybe H2 2027, H1 2028 is the time when we will get more color on the potential of external feeds to the POX. Do you still have your office in London? What is its purpose? Solidcore does not have the office in London. It was closed after we completed the re-domiciling. Now we have all of the key management personnel located in Astana. The CEO, myself, the CFO, for moving back to LSE. So London office doesn't serve any purpose.

Speaker #1: So maybe second half of 2027, first half 2028, is the time when we will get more color on the potential of external feed to the epochs.

Speaker #1: Do you still have your office in London? What is its purpose? Solid core does not have the office in London. It was closed after we completed the redomiciling.

Speaker #1: Now we have all of the key management personnel located in Astana. The CEO, myself, the CFO, are moving to back to LSC so London office doesn't serve any purpose.

Speaker #1: Do you plan to adopt a new dividend policy and return to dividends payout anytime soon? Well, I think this is a great question. As I have mentioned, at the start of my presentation, this transaction, the tender offer, represents a watershed now those shareholders who want to cash out and take money off the table have a great opportunity to do so.

Vitaly Nesis: Do you plan to adopt a new dividend policy and return to dividends payout anytime soon? Well, I think this is a great question. As I have mentioned at the start of my presentation, this transaction, the tender offer, represents a watershed. Those shareholders who want to cash out and take money off the table have a great opportunity to do so. Those who remain should be prepared to stick with the company without capital distributions for quite a long time. Clearly, we are entering capital-intensive phase of our strategy. We want to keep our powder dry. We want to have a war chest. So I think no dividends are expected at least until the POX is up and running full capacity in 2029 and maybe longer.

Speaker #1: And those who remain should be prepared to stick with the company without capital distributions for quite a long time. Now clearly we are entering capital intensive phase of our strategy.

Speaker #1: We want to keep our powder dry. We want to have a war chest so I think no dividends I expected until at least until the PACS is up and running full capacity in 2029 and maybe longer.

Speaker #1: Again, this may sound painful but we are appealing to patient shareholders to stay with the company to have faith in our long-term growth aspirations and I think the final outcome maybe five years down the road should be quite lucrative.

Vitaly Nesis: Again, this may sound painful, but we are appealing to patient shareholders to stay with the company, to have faith in our long-term growth aspirations. I think the final outcome, maybe five years down the road, should be quite lucrative. When do you think the inventories are back to normalized level? We hope that they will be normalized by the end of this year. However, we already have witnessed several significant disruptions in the flow of material from Russia to Kazakhstan. So the current situation actually lends itself to full normalization by year-end. But the situation in Russia is unpredictable for obvious reasons. So I am cautiously forecasting year-end, but with a full understanding that this may prove to be an optimistic assumption. I already answered the question about the completion of the buyback. I personally expect 100% take-up.

Speaker #1: When do you think the inventories are back to normalized level? We hope that they will be normalized by the end of this year. However, we already have witnessed several significant disruptions in the flow of material from Russia to Kazakhstan.

Speaker #1: So the current situation actually lands itself to full normalization but by year-end. But the situation in Russia is unpredictable for obvious reasons. So I'm cautiously forecasting year-end but with full understanding that this may prove to be an optimistic assumption.

Speaker #1: I already answered about I already answered the question about the completion of the buyback. I personally expect 100% take up. Now we will not pay the rest in dividends.

Vitaly Nesis: We will not pay the rest in dividends if it is not taken up by 100%. What is the timeline around Beshkyrek project? Beshkyrek has been slipping a little bit in terms of preparing its final pre-feasibility study, and kind of getting down to hard numbers for the final valuation of the project. We still hope that we will have enough time to evaluate these numbers and make a strategic decision on Beshkyrek by the end of the year. Given Solidcore's advanced eco-friendly pressure oxidation expertise, has the board considered expanding our processing footprint to act as regional pulp treater to third-party mining companies? Yes, we have considered this. Again, I think we need maybe 12 to 18 more months to demonstrate to potential concentrate sellers the impending completion of the project and the real arrival of the processing capacity.

Speaker #1: If it's not taken up by 100%. What is the timeline around best to keep project? Best Ricky has been slipping a little bit in terms of preparing its final previsibility study.

Speaker #1: And kind of getting down to hard numbers for the final valuation of the project. We still hope that we will have enough time to evaluate these numbers and make a strategic decision on best to keep by the end of the year.

Speaker #1: Given solid core's advanced eco-friendly pressure oxidation expertise, has the board considered expanding our processing footprint to act as original pulp treater to third-party mining companies?

Speaker #1: Yes, we have considered this. Again, I think we need maybe 12 to 18 more months to demonstrate to potential concentrate sellers the impending completion of the project and the real arrival of the processing capacity.

Speaker #1: So this is a business opportunity that the management and the board are well aware of and will continue to monitor it. Are you aware of any institutional investors who intend to accept approach solid core regarding this matter?

Vitaly Nesis: This is a business opportunity that the management and the board are well aware of and will continue to monitor it. Are you aware of any institutional investors who intend to accept the offer? Do these investors approach Solidcore regarding this matter? No, we have not talked to anybody about the offer. Again, this would have represented asymmetric disclosure, selective disclosure against market rules. We expect quite a lot of investor questions following the launch of the offer, but we haven't received any yet. Are you enjoying your role as CEO, and what is his current and trajectory of share ownership? My share ownership has been stable for the last five years at around 3.5 million shares. Again, I have signed an irrevocable undertaking not to tender any of shares I own. So I will maintain numerical count, and my percentage ownership will increase to about 1%.

Speaker #1: No, we have not talked to anybody about the offer. Again, this would have represented a symmetric disclosure, selective disclosure against market rules. We expect quite a lot of investor questions following the launch of the offer but we haven't received any yet.

Speaker #1: Are you enjoying your role as CEO and what is his count and trajectory of share ownership? I have my share ownership has been stable for the last five years at around 3.5 million shares.

Speaker #1: Again, I have signed an irrevocable undertaking not to tender any of shares I own. So I will maintain numerical count and my percentage ownership will increase to about 1%.

Vitaly Nesis: When does the board anticipate being able to adopt a new dividend policy on a non-binding basis? The calendar year is sufficient. I think we need to complete the tender offer, see the reaction of the shareholders, see the take-up, and then we may consider, as a board, a formalization of the approach to dividends, which is likely to be very thrifty. As I have mentioned, the strategic trajectory of the company does not envision paying any dividends short term or medium term. Are UK brokers eligible for the tender offer? Kirill, you can take this.

Speaker #1: When does the board anticipate being able to adopt a new dividend policy on an unbinding basis? The calendar year is sufficient.

Speaker #2: I think we need to complete the tender offer see the reaction of the shareholders, see the take up and then we may consider as a board a formalization of the approach to dividends which is likely to be very, very thrifty as I have mentioned the strategic trajectory of the company does not envision paying any dividends short term or medium term.

Speaker #2: Are UK brokers eligible for the tender offer? Maybe Kirill, you can take this.

Speaker #3: Sure. Only those brokers who have access to Astana International Exchange. As far as I know, there are none.

[Company Representative] (Solidcore): Sure. Only those brokers who have access to Astana International Exchange. As far as I know, there are none.

Kirill Kuznetsov: Sure. Only those brokers who have access to Astana International Exchange. As far as I know, there are none.

Vitaly Nesis: Does the company plan to deal with the treasury shares from both the 2025 Euroclear related buyback and the current tender offer? Will they be canceled outright, or could they be reissued later? This is important for understanding the real per share accretion effect. We have retained full flexibility vis-à-vis those shares. But in terms of the accretion or dilution, these shares effectively do not have an economic claim on the company's assets, and their potential future issuance, if any, will be subject to shareholder voting. Careful explanation. I personally think that their fate does not in any way impact valuation considerations for the company. Will Syrymbet produced finished metal, which will be sold at LME prices, or will it be concentrate sold with discount to LME? Could you tell the percentage of tin and copper in the concentrate?

Speaker #2: Does the company plan to deal with the treasury shares from both the 2025 Euroclear related buyback and the current tender offer? Will they be canceled outright or could they be reissued later?

Speaker #2: This is important for understanding the real per share accretion effect. We have retained full flexibility vis-à-vis those shares but in terms of the accretion or dilution, these shares effectively do not have an economic claim on the company's assets and their potential future reissuance if any will be subject to shareholder vote and careful explanation.

Speaker #2: So I personally think that their fate does not in any way impact valuation considerations for the company. Will Serembet produce finished metal which will be sold at LME prices or will it be concentrate sold with discount to LME?

Speaker #2: and copper in the concentrate? Now we will provide fine details of the feasibility study after the final investment decision by the board. Serembet will produce concentrates tin concentrate and copper concentrate the payability of metal in those concentrate concentrates are expected to be quite high given very tight feedstock markets for almost all metals nowadays.

Vitaly Nesis: We will provide fine details of the feasibility study after the final investment decision by the board. Syrymbet will produce concentrates, tin concentrate and copper concentrate. The payability of metal in those concentrates are expected to be quite high, given very tight feedstock markets for almost all metals nowadays, and high quality of those concentrates, not so much in terms of the concentrate grade, but in terms of the lack of deleterious impurities. I will not repeat answers to the questions I have already answered on dividends, other exchanges. Will you be increasing the tender offer price? If the offer is not taken up fully, what happens to the remaining cash? We are legally precluded from increasing the tender offer price. This is final price. If the tender is not taken up fully, the remaining cash will just revert to the company's balance sheet.

Speaker #2: And high quality of those concentrates not so much in terms of the concentrate grade but in terms of the lack of deleterious And could you tell the percentage of tin impurities.

Speaker #2: I will not repeat answers to the questions I have already answered on dividends other exchanges will you be increasing the tender offer price and if the offer is not taken up fully what happens to your remaining cash?

Speaker #2: We are legally precluded from increasing the tender offer price so this is final price. If the tender is not taken up fully the remaining cash will be just revert to the company's balance sheet.

Speaker #2: What is your forecast for average gold price in 2026 and 2027? I think for 2026 the I guess the opposite question is what is our expectation for year round price.

Vitaly Nesis: What is your forecast for average gold price in 2026 and 2027? I think for 2026, I guess the opposite question is, what is our expectation for year-round price? I would say $4,000 per ounce. Next year, we are budgeting at $4,000 per ounce as well, with the downside case of $3,500 per ounce. Why is the company tendering such a large number of shares when this will push the company back into net debt position? Well, I personally think that net debt in and of itself is not a bad thing. Optimal shareholder structure definitely envisions or presumes net debt, not net cash.

Speaker #2: I would say $4,000 per ounce and next year we are budgeting at $4,000 per ounce as well with the downside case of 3,500 per ounce.

Speaker #2: What is the company tender in such a large number of shares when this will push the company back into net debt position? Well, I personally think that net debt in and of itself is not a bad thing.

Speaker #2: Optimal shareholder structure definitely envisions or presumes net debt not net cash. And I think given the position of the company in on our strategic trajectory it makes sense and it is fair to all shareholders to buy out those who went out I repeat myself and to let those who are prepared to support the management and the board's vision for the company's future to stay with the company.

Vitaly Nesis: I think given the position of the company on our strategic trajectory, it makes sense, and it is fair to all shareholders to buy out those who want out, I repeat myself, and to let those who are prepared to support the management and the board's vision for the company's future to stay with the company. What execution risks are of concern currently, and what timeline is expected for these to become minimal? I presume this is related to POX. I think the key risk is general construction labor scarcity in Kazakhstan. There are quite a lot of large industrial projects under construction, and the contractor market, labor market, are quite tight. So the deficit of qualified construction labor would be the number 1 risk.

Speaker #2: What execution risks of concern currently and what timeline is expected for this to become minimal? I presume this is related to POX. I think the key risk is a general construction labor scarcity in Kazakhstan now there are quite a lot of large industrial projects under construction and the contractor market labor market are quite tight.

Speaker #2: So the deficit of qualified construction labor would be the number one risk. How can you reassure shareholders that MADEN will not pursue a take over the company considering this tender offer would be in their favor to do so?

Vitaly Nesis: How can you reassure shareholders that Maaden will not pursue a takeover of the company, considering the standard offer would be in their favor to do so? Well, let's look at the situation realistically. Solidcore is a Kazakhstani company. This year, we are likely to be the largest gold producer in the country. We are the most liquid stock on the Astana International Exchange. We are very prominent in our interactions with the government. I think our status as a public company with no majority shareholder is a huge asset in terms of ensuring the mitigation of all political and stakeholder risks. I am sure, I am confident Maaden understands it very well and does not intend to increase its shareholding further. Do you expect the ownership structure at Syrymbet to change in any way post-FID as it progresses through development and into production? This is an interesting question.

Speaker #2: Well, let's look at the situation realistically. Solid Core is a Kazakhstani company. This year we are likely to be the largest gold producer in the country.

Speaker #2: We are the most liquid stock on the Astana International Exchange. We are very prominent in our interactions with the government. I think our status as a public company with no majority shareholder is a huge asset in terms of ensuring the mitigation of all political and stakeholder risks.

Speaker #2: And I think I'm sure I'm confident MADEN understands it very well and does not intend to increase its shareholding further. Do you expect the ownership structure at Serembet to change in any way post FID as it progresses through development and into production?

Speaker #2: Now this is an interesting question. A lot will depend on the future direction of the tin market. Right now it's smoking hot. So probably some form of a standalone future for tin assets may represent an interesting opportunity.

Vitaly Nesis: A lot will depend on the future direction of the tin market. Right now it is smoking hot, so probably some form of a standalone future for tin assets may represent an interesting opportunity. I don't think it is on the cards until we are really close to the completion of the project. So the simple answer is no for the time being. 3 years down the road, we will see. If the tender is undersubscribed, what determines whether the unused cash goes to shareholders or new projects? If the tender is undersubscribed, we will assume that the shareholders who did not take up the offer rejected cash, subscribe to the management's vision of aggressive future growth. So this cash will stay with the company to fund future growth.

Speaker #2: I don't think it's on the cards until we are really close to the completion of the project. So the simple answer is no for the time being.

Speaker #2: Three years down the road we'll see. If the tender is under subscribed what determines whether the unused cash goes to shareholders or new projects?

Speaker #2: If the tender is under subscribed we will assume that the shareholders who did not take up the offer rejected cash subscribed to the management's vision of aggressive future growth.

Speaker #2: So this cash will stay with the company to fund future growth. To confirm on the dividend policy there might be a low payout during the near term or will this be zero until the new projects are developed given capital requirements there?

Vitaly Nesis: To confirm on the dividend policy, there might be a low payout during the near term, or will this be zero until the new projects are developed given capital requirements there? It will be zero until the new projects are developed. This is a great question, and I want to be very clear on what to expect. Historically, the company had a policy of only having two development projects running at any one time. I believe this allowed the company to focus and maintain fiscal discipline. Is this still the company policy, and how does that tie with this era of high growth and high gold prices? Well, a project is a bit imprecise. There are projects and there are other projects. For example, obviously, POX plus Syrymbet will probably fill up the development capacity of the company fully.

Speaker #2: It will be zero until the new projects are developed. This is a great question and I want to be very clear on what to expect.

Speaker #2: Historically the company had a policy of only having two development projects run it at any one time. I believe this allowed the company to focus and maintain fiscal discipline.

Speaker #2: Is this still the company policy and how does that tie with this era of high growth and high gold prices? Well, a project is a bit imprecise there is there are projects and there are other projects.

Speaker #2: For example obviously POX plus Serembet probably fill up the development capacity of the company fully. But when POX goes from the development mode into the ramp up mode I think the resulting the resulting availability of development capacity will be significant.

Vitaly Nesis: But when POX goes from the development mode into the ramp-up mode, I think the resulting availability of development capacity will be significant. So we can potentially do Syrymbet plus two relatively straightforward projects. For example, Syrymbet plus something in Kazakhstan and something in Omolon. I am probably speculating too much here, but two is a good number. Three is not an impossible number. If people need to open an account with an AIX broker to participate in the tender offer, then why can't they just sell on the AIX? Why do they need a tender offer? Well, the issue with AIX is low liquidity. You definitely can sell on AIX, and as far as I understand, stock was trading today pretty close to the standard price. So, yes, please do if there is sufficient liquidity.

Vitaly Nesis: But when POX goes from the development mode into the ramp-up mode, I think the resulting availability of development capacity will be significant. So we can potentially do Syrymbet +2 relatively straightforward projects. For example, Syrymbet plus something in Kazakhstan and something in Omolon. I am probably speculating too much here, but two is a good number. Three is not an impossible number. If people need to open an account with an AIX broker to participate in the tender offer, then why can't they just sell on the AIX? Why do they need a tender offer? Well, the issue with AIX is low liquidity. You definitely can sell on AIX, and as far as I understand, stock was trading today pretty close to the standard price. So, yes, please do if there is sufficient liquidity.

Speaker #2: So we can potentially do Serembet plus two relatively straightforward projects. For example Serembet plus something in Kazakhstan and something in Oman. But you know I'm probably speculating too much here but two is a good number.

Speaker #2: Three is not an impossible number. If people need to open an account with an AIX broker to participate in the tender offer then why can't they just sell on the AIX?

Speaker #2: Why do they need a tender offer? Well, the issue with AIX is low liquidity. You definitely can sell on AIX and as far as I understand stock was trading today pretty close to the tender price.

Speaker #2: So yes please do if there is sufficient liquidity. How confident are the management in the move to underground mining at KZIL and how will this likely affect AISC and output?

Vitaly Nesis: How confident are the management in the move to underground mining at Kyzyl, and how will this likely affect AISC and output? Well, we are confident that this is necessary. The open pit reserves are drawing to the completion in the main pit, and the eastern pit will have lower grade. So this is a must. In terms of technical parameters and design decisions, I think we have given this project all we could in terms of people, resources, and my personal attention. Between POX, Syrymbet, and Kyzyl underground, I personally dedicate approximately the same amounts of time to each of these projects. This is a conventional underground mine in an easy location, established infrastructure, not without ground control challenges, but I believe the company as a whole and the project team are definitely well-positioned to tackle all of those challenges.

Speaker #2: Well, we are confident that this is necessary. The open pit reserves are drawing to the completion in the main pit. And the eastern pit will have lower grade.

Speaker #2: So this is a must. And in terms of technical parameters and design decisions I think we have given this project all we could in terms of people resources and my personal attention.

Speaker #2: Between EPOC Serembet and KZIL underground I personally dedicate approximately same amounts of time to each of these projects. Now this is a conventional underground mine in an easy location.

Speaker #2: Established infrastructure. Not without ground control challenges. But I believe the company as a whole and project team are definitely well positioned to tackle all of those challenges.

Vitaly Nesis: If you are entering a capital-intensive period, why are you giving away USD 1 billion? We need to be fair to the shareholders who have stuck with the company for a long time, and they need to be rewarded for their patience, and they need to be provided a fair exit for their patience. Again, those who want to leave should be given an opportunity to leave, and this offer gives these shareholders this opportunity now, which is unique given low liquidity on the market. Those who wish to stay will stay and wait until the strategy is realized. Solidcore previously mentioned that they had identified a specific target for M&A. Has this progressed, and when will it be likely announced? This question, we expect the transaction to be announced before the year-end. We are really close.

Vitaly Nesis: If you are entering a capital-intensive period, why are you giving away $1 billion? We need to be fair to the shareholders who have stuck with the company for a long time, and they need to be rewarded for their patience, and they need to be provided a fair exit for their patience. Again, those who want to leave should be given an opportunity to leave, and this offer gives these shareholders this opportunity now, which is unique given low liquidity on the market. Those who wish to stay will stay and wait until the strategy is realized. Solidcore previously mentioned that they had identified a specific target for M&A. Has this progressed, and when will it be likely announced? This question, we expect the transaction to be announced before the year-end. We are really close.

Speaker #2: If you are entering a capital intensive period why are you giving away 1 billion dollars? We need to be fair to the shareholders who have stuck with the company for a long time.

Speaker #2: And they need to be rewarded for their patience and they need to be provided a fair exit for their patience. Again those who want to leave should be given an opportunity to leave and this offer gives these shareholders this opportunity which is unique given low liquidity on the market.

Speaker #2: Those who wish to stay will stay and wait until the strategy is realized. So it previously mentioned that they had identified a specific target for M&A.

Speaker #2: Has this progressed and when will be likely announced? And so this question we expect the transaction to be announced before the year end. We are really close.

Speaker #2: When 1 million target 1 million gold equivalent target is expected by around 2030 how much will be new and M&A? The existing projects KZIL and Varvara are likely to be pretty close to the level they currently produce.

Vitaly Nesis: When 1 million gold equivalent target is expected by around 2030, how much will be you and M&A? The existing projects, Kyzyl and Varvara, are likely to be pretty close to the level they currently produce, so 500,000, 550,000 ounces per year. The increase will all come from new projects, Syrymbet, third-party feed at Ertis POX, and our M&A ideas. Hopefully, something will also materialize from our exploration efforts. You have always said you don't comment on share price, and now you launch a tender offer for shareholders to sell. The reasoning for this is not clear. It's one thing to comment whether share price is good or not. It's the other thing to give shareholders a fair opportunity to stay with the company and support its strategy going forward, or to get a fair price by selling into the tender offer.

Speaker #2: So 500 550 thousand ounces per year. The increase will all come from new projects. Serembet third party feet at EPOC and our M&A ideas hopefully something will also materialize from our exploration efforts.

Speaker #2: You have always said you don't comment on share price and now you launch and tender offer for shareholders to sell. The reasoning for this is not clear.

Speaker #2: It's one thing to comment whether share price is good or not. It's the other thing to give shareholders a fair opportunity to stay with the company and support its strategy going forward or to get a fair price by selling into the tender offer.

Speaker #2: In terms of whether the price is fair or not well this is market. And I think 10% premium to one month weighted average is pretty standard here.

Vitaly Nesis: In terms of whether the price is fair or not, well, this is market, and I think 10% premium to one month weighted average is pretty standard here. I don't think you can appeal to multiple given very high specific risks for the company. The board has carefully considered all of the relevant metrics and unanimously decided that the pricing is adequate. Does the company know what percentage of shares are still held in UK brokers? Kirill, can you take this?

Speaker #2: I don't think you can appeal to multiple given a very high specific risks for the company. The board has carefully considered all of the relevant metrics.

Speaker #2: And unanimously decided that the pricing is adequate. Does the company know what percentage of shares are still held in UK brokers? Kirill can you take this?

Speaker #1: Sure. Yes. Unfortunately we do not have a precise number.

[Company Representative] (Solidcore): Yes, unfortunately, we do not have a precise number.

Kirill Kuznetsov: Yes, unfortunately, we do not have a precise number.

Speaker #2: Why a buyback and not just a dividend for the long-term holders? Well again this is not this transaction is not only about the return of excess liquidity to shareholders.

Vitaly Nesis: Well, again this transaction is not only about the return of excess liquidity to shareholders. It's about more or less the split up in the larger shareholder body. I may be beating a dead horse, but we want to be clear. Those who want to exit. Those who want to stay. And the cash is the way to adequately buy out those who want to leave. The dividend will not serve this purpose. Although another important consideration in terms of dividend versus buyback, dividend would have been viewed by the in-country stakeholders as taking money off the table, particularly by the largest shareholder. In the buyback, the largest shareholder and the management is not taking money off the table.

Speaker #2: It's about more or less the split up in the larger shareholder budget. I may be bidding it that horse but we want to be clear those who want to exit exit.

Speaker #2: Those who want to stay stay. And the cash is the way to adequately buy out those who want to leave. The dividend will not serve this purpose.

Speaker #2: Although another important consideration in terms of dividend versus buyback dividend would have been viewed by the in-country share in-country stakeholders as taking money off the table.

Speaker #2: Particularly by the largest shareholder. Buyback in the buyback the largest shareholder and the management is not taking money off the table. It creates a significantly different optics and I know for a fact because I have personally discussed the conceptual structure of the transaction with government officials that the government view of a buyback transaction is significantly more sanguine and calm compared with the large dividend.

Vitaly Nesis: It creates significantly different optics, and I know for a fact because I have personally discussed the conceptual structure of the transaction with government officials that the government view of a buyback transaction is significantly more sanguine and calm compared with the large dividend. So for us, the choice was pretty obvious. I guess the remaining questions I already have covered. Again, dividends, POX, Kazakhstan ground. So thank you very much for active participation. I understand that the transaction we have launched today is again unique, but I hope we made the strategic rationale and the future plan as clear as possible. Please do not hesitate to write to the Investor Relations team to arrange calls with the top management. We will be standing ready to explain both the strategic underpinnings of the transaction and the fine mechanics. There is another question which I think is worth answering.

Speaker #2: So for us the choice was pretty obvious. I guess the remaining questions I already have covered. Again dividends POCs s KZIL underground. So well thank you very much for active participation.

Speaker #2: I understand that the transaction we have launched today is again unique. But I hope we made the strategic rationale and the future plan as clear as possible.

Speaker #2: Please do not hesitate to write to the investor relations team to arrange calls with the top management. We'll be standing ready to explain both the strategic kind opinions of the transaction and the fine ine mechanics.

Speaker #2: There is another question which I think is worth answering Kirill can you take this about Kasia?

Vitaly Nesis: Kirill, can you take this about KASE?

Speaker #1: Does the company know why there appears to have been no trading on Kasia since being added in January? Yes that was the Kasia's initiative to list us.

[Company Representative] (Solidcore): Does the company know why there appears to have been no trading on KASE since being added in January? Yes, that was the KASE's initiative to list us, and we have not submitted an approval there as we are only listed on the AIX, and the AIX remains our primary listing venue.

Kirill Kuznetsov: Does the company know why there appears to have been no trading on KASE since being added in January? Yes, that was the KASE's initiative to list us, and we have not submitted an approval there as we are only listed on the AIX, and the AIX remains our primary listing venue.

Speaker #1: And we have not submitted an approval there as we are only listed on AX and AX remains our primary listing venue.

Speaker #2: And I think another question it's a bit facetious but it's a good formula. I thought we were a private enterprise why is the government having a say in dividends?

Vitaly Nesis: I think another question. It's a bit facetious, but it's a good formula. I thought we were a private enterprise. Why is the government having a say in dividends? Look, government is always having a say on large strategic decisions by the subsoil users, particularly in the countries like Kazakhstan. A successful company subsoil user needs to be very finely tuned to the preferences and interests of stakeholders, of which government is probably the most significant one. Ignoring the interests and preferences of these external stakeholders because something has been written in economics books or philosophical treatises will lead the private enterprise nowhere. I've been working in subsoil industry for 25 plus years now, and this is something I have internalized fully and believe is a received wisdom. Well, again, thank you very much. Please don't hesitate to contact us. Have a nice day. Bye-bye.

Vitaly Nesis: I think another question. It's a bit facetious, but it's a good formula. I thought we were a private enterprise. Why is the government having a say in dividends? Look, government is always having a say on large strategic decisions by the subsoil users, particularly in the countries like Kazakhstan. A successful company subsoil user needs to be very finely tuned to the preferences and interests of stakeholders, of which government is probably the most significant one. Ignoring the interests and preferences of these external stakeholders because something has been written in economics books or philosophical treatises will lead the private enterprise nowhere. I've been working in subsoil industry for 25+ years now, and this is something I have internalized fully and believe is a received wisdom.

Speaker #2: Look a government is always having a say on large strategic decisions by the subsoil users particularly in the countries like Kazakhstan. A successful company subsoil user needs to be very finely tuned to the preferences and interests of stakeholders of which government is probably the most significant one.

Speaker #2: Ignoring the interests and preferences of this external stakeholders because something has been written in economics books or philosophical treatises will lead the private enterprise nowhere.

Speaker #2: I've been working in subsoil industry for 25 plus years now and this is something I have internalized fully and believe is a received wisdom.

Vitaly Nesis: Well, again, thank you very much. Please don't hesitate to contact us. Have a nice day. Bye-bye.

Speaker #2: thank you very much. Please don't hesitate to contact us. Have a nice day. Bye bye.

Speaker #1: This concludes the call. Thank

[Company Representative] (Solidcore): This concludes the call. Thank you.

Kirill Kuznetsov: This concludes the call. Thank you.

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