Resolute Mining (ASX:RSG) Q3 2026 Earnings Call

0:00 Good morning, ladies and gentlemen, and welcome to the Resolute Mining Limited third quarter 2026 conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session through the phone lines, and instructions will follow at that time. For those listening via the phone lines, the presentation is now available within the Investors section of Resolute Mining's website. For those watching the webcast, if you wish to submit a written question, you may do so by using the Ask a Question button on the Spark Live page. I would like to remind all participants that this call is being recorded. I will now head over to the Chief Executive Officer, Chris Eggert, to open the presentation. Please go ahead.

0:47 Welcome to our Q3 operating results. I'm Chris Eggert, CEO of Resolute Mining. I'm joined today by Gavin Harris, our COO, Dave Jackson, our CFO, and Mattie O'Toole, our Head of Corporate Development and Best of Relations. Now, moving to slide four. Very pleased that our Q3 activities continue to show progress across the business. Let's first start with the metrics on the right side of the page, starting with gold poured of just over 44,000 ounces, with 31,000 ounces coming from Sciamma, and just about 13,000 ounces coming from our macro operations in Senegal. Our group ASIC was at $2,506 per ounce, which came in at $2,596 per ounce at Sciamma and $1,516 per ounce at Mako, which I'm pleased to say was lower than our Q2 ASIC. In addition, we spent over $85 million on capital expenditures with about $53 million coming from Duropo.

1:47 Very pleased to say that we sold 33,000 ounces of gold in the third quarter at an average realized gold price of $4,325 per ounce. which generated an EBITDA of $64 million, and therefore an operating cash flow of just about $56 million, which was less than our Q2 operating cash flows, but that was due to the timing of not selling the total amount poured in the quarter. So we ended the quarter with a total net cash of $276 million, so the business remains very healthy from a balance sheets perspective. So what does this mean? We're still very much now on track for revised guidance of 205,000 to 225,000 ounces per year at an ASIC of approximately $2,225 to $2,350 per ounce.

2:32 But most importantly, our projects and activities on exploration are going extremely well. The ROPO is on track, on budget, and first gold pour is planned in the first half of 2028. At ABC, we completed over 23,000 meters of drilling, and we have also launched the technical studies with the aim to complete our feasibility study in 2027 so that we can apply for mining permits. Also in the quarter, we completed drilling in our Legibo project, also in Côte d'Ivoire, with an updated MRE, which increased the overall resource by 44%, up to close to a million ounces. We're near completion of our Siamis sulfide conversion project in Mali, which has been a very significant achievement for that site.

3:17 And finally, in Senegal, we made continued progress with our macro life extension project whereby we've advanced our ESIA process and we're on the verge of filing for our mining applications for both Bentaco and Tabarankoto. And as previously described in our last board of results, we completed over $260 million of local bank financings for our Dubropo project. And to date, we've actually drawn $29 million from those facilities. Now moving to slide five. So this is a slide that we've presented numerous times in the past, but it's important to talk about it again, as this provides clear visibility around the business strategy to achieve over 500,000 ounces from 2028. which will considerably diversify the production portfolio away from Mali with a strong focus of activities in Cote d'Ivoire. So very comfortable with our progress in the business.

4:10 And not only do we see potential in the four assets that we have today, which includes ABC, we also see opportunities to grow the production footprint at each of our assets, which we'll go into more detail in the upcoming slides. Now moving on to the next section, starting with slide seven, wanted to talk to you about our progress of our ABC exploration project in the west of Cote d'Ivoire. As mentioned before, we think this is a very interesting project for the business that could become our fourth operating asset within the portfolio. As highlighted in our Q2 results, the intention was to do infill drilling in the second half of this year, and we've made meaningful progress with those activities. Since July, we've entered into an infill drilling program. In the past several months, completed over 24,000 meters of drilling, and we have currently 11 rigs on site. We've also kicked off metrological studies as well as the East IA impact study, which we anticipate to complete by the first half of next year. Moving to slide eight, I want to give you some additional specifics around our ABC exploration project in Côte d'Ivoire. So if you remember from our Q2 release, today ABC has 3 million ounces, 0.7 gram per 10, but all inferred resources.

5:26 So the infill program is meant to also increase from inferred to indicated. To date, we've completed the infill drilling in Kona South, and we're now moving into Kona Central. You can see on the right side of the page, in the blue dots are the completed holes, with the red dots being the planned holes. And I have to say very pleasingly that the results we're seeing in Kona South are as expected. So expect that by the beginning of next year, we'll be able to update the markets with an updated MRE, which will obviously convert quite a bit of the inferred into indicated. So looking at the study schedule on the bottom left, the plan is to complete the infill drilling by the end of this year, publish an updated MRE in the beginning of next year, in parallel completing the ESIA and technical studies required to get to a point of completing a feasibility study, which will allow us to file for a mining permit, hopefully by the end of next year.

6:19 So again, very pleased with how this project is progressing. And again, I believe that it has strong merits to become our fourth operating asset within the portfolio. Now moving on to page nine. In addition to our ABC exploration project in the west of Cote d'Ivoire, it's also worth noting that we have a third asset, the Legibo Exploration Project, which is located 280 kilometers west of Abidjan. It's a smaller deposit, but still could be very interesting for the group. In this third quarter, we completed roughly 16,000 meters of extension drilling in order to grow the resource of this deposit. The entire drilling efforts were based in the G3 South zone of the Ledipo permit, which again provided some good intersections to grow the mineralization. In addition, we secured two additional permits to the south of Ledipo in order to try and grow the overall portfolio considerably.

7:14 Now moving to page 10. With respect to our Ledipo exploration project, as you can see on this slide, The focus of the drilling was in G3 South Zone, which occurred over a 600-meter strike. The drilling was completed up to around 200 meters at depth and encouragingly, we saw the resource expanding by over 75%. So G3 South today sits with 670,000 ounces with a total deposit of close to a million ounces at a grade of 1.2 grams per ton. So with respects to planned activities, at this stage, we plan to pause additional exploration works for the rest of the year at Ladibo as we focus on the development plans for 2027. which will be identifying additional exploration targets both within the Ligdebo permit as well as the new two permits to the south.

8:05 At this stage the project looks interesting but it's not clear whether it's of a scale that meets Resolute's needs. So we'll either continue to develop the project and take it into production or we'll look to exit this asset sometime in 2027. With that, I'll now turn it over to Gavin to continue providing updates on Duropo as well as our operating activities in both Sciamma and Mako.

8:30 Thanks, Chris. At Duropo, it's full steam ahead with over 800 people mobilized onto the project to date, including recruitment of a general manager for the operation who brings with him a decade of managing operations in Cote d'Ivoire. Completion of the first stage of accommodation facilitated the mobilization of multiple contractors and a significantly reduced travel time from surrounding towns, which has also increased productivity. Earthworks in the plant area are substantially complete, allowing construction work to commence and achieve the first major milestone with concrete poured for CIL tank foundations. With construction activity increasing at the plant area, earthworks focus moves to the water harvest, water storage and tailings embankments as we move into the dry season. The last remaining work package for SMP and electrical have been tendered with awards pending. Nearly two-thirds of the project expenditure is already committed and costs remain on track with the DFS estimate.

9:26 During Q3, we also received the tender submissions and completed the adjudication for a 30 megawatt solar power plant. This eco-friendly, low-cost power solution will be fully funded and operated by the supplier with a power offtake agreement for the life of mine. The progress during Q3 was remarkable, especially considering the team were required to ramp up activity whilst navigating the West African wet season. I was on the ground at Droipa a few weeks ago and I'm delighted to see the progress that the team are making. The project remains on schedule and on budget, and we're immensely proud of what Rob and the project team have achieved to date. In line with the schedule, we expect first gold to be poured in H1 2028. As you can see from the photos, things are starting to take shape on the ground and we expect the landscape to change quickly as the concrete teams begin chasing the ground preparation team. Starting from the top left, moving clockwise, we have the concrete batch plant supplied and operated by Wacom, the ring beam foundations, formwork and concrete works for the first of the CIL tanks, and finishing with the mill raft foundation preparation works.

10:29 We've enjoyed a great start to the Duropo project and we expect to maintain this momentum as we close out 2026. Q4 will see the completion of the second stage of construction accommodation which will meet the needs of the project. Concrete works will move quickly and mobilization of the contractors for SMP and CIL tanks will take place before the end of the year. The major focus will be on the water infrastructure and ensuring the harvest and storage areas are in place early in 2027 to maximize the capture and storage of water during the next wet season. Operation Readiness Workstreams are already advancing with the appointment of the General Manager as we prepare for the mining operations to commence in 2027. The Duropo ore reserve released in 2025 was calculated using a $1,950 per ounce gold price. This also aligned with the Duropo mining permit, which considered $2,000 per ounce footprint.

11:20 Kilisegi is the largest deposit at Duropo, comprising nearly 40% of the total reserve, and is located approximately 30 kilometers from the Duropo processing plant. Kilosegi is located within a six kilometer mineralization trend and remains open along strike and at depth. During the quarter, a 20,000 meter step out drilling program commenced to assess potential extension of the mineralization and to increase the reserve. Given the current size and potential extension at Kilosegi, along with the cost to transport ore back to the Draupo plant, a trade-off study is underway to assess the possibility of a standalone plant and associated infrastructure at Kilosegi. A further update will be provided in H1-2027 as drilling results and infrastructure workstreams progress. We move on to our mining operations, starting with SIAMA in Mali.

12:07 SIAMA continues to face a number of challenges associated with working in Mali, and after a good start to the year, suffered a poor second quarter off the back of a significant security challenge within the country. These challenges were carried forward, but as we close the third quarter, performance has started to return to expectation. The third quarter production of 31,800 ounces was in line with the operational update released in September, with over half this production, 15,600 ounces, delivered during September. The major shutdown that commenced at the end of the second quarter and carried on into the third quarter was extended due to inability to mobilize the full international contract workforce required to complete the three-week roaster shutdown. Additional challenges with the roaster upgrade, part of the Siamis Sulphide Coversion Project, or SSCP, resulted in intermittent operation of the roaster through the first half of the quarter. By the end of the quarter, these challenges have been rectified and the roaster is currently performing in line with expectation.

13:05 Bulk explosive deliveries improved midway through the quarter, but the lack of explosives in the first half of the quarter significantly impacted the underground caving operation. A more positive update is that the delivery and construction of the emulsion manufacturing plant took place during the quarter and commissioning is currently underway with the first batch of exposures expected to be manufactured next week. This significantly de-risks future production and is expected to return Siam Mining operations to targeted production levels and allow for further optimization work. The SSCP work stream remains on track with Borg mill commissioning underway and the benefits should be seen towards the second half of the fourth quarter. Gold production is expected to return to 45,000 to 50,000 ounces during this quarter, following on from a robust end to the last quarter.

13:50 Some challenges remain with mining contractor performance in the open pit operations at A21, but overall the Siam management team have overcome most of the challenges they were up against, and the operation is largely stabilized after a turbulent four to five months. Now we move to our Mako operation in Senegal. Mako also achieved an important milestone during the third quarter as we are pleased to announce the appointment of the Senegalese general manager of the operation, replacing the previous expatriate general manager. Gold production of 12,621 ounces delivered during the third quarter met expectations and continues the successful year at our Mako operation. The all-in sustaining cost of $1,516 per ounce for the third quarter was below our annual guidance target, reflecting a number of cost optimization initiatives that have been completed at the operation.

14:36 This favorable all-in sustaining cost achievement, despite high fuel prices and increased royalties in the higher gold price environment, is a good indication of what is achievable in more stable jurisdictions. Mako continues to deliver strong free cash flow and remains on track to meet annual gold production guidance whilst outperforming the lower end of cost guidance. The third quarter focused on progressing ESIA, or Environmental Social Impact Assessment, approvals and permits for both the Tomboran Kota and Bantako deposits. Of note was the approval of all the ESIA submissions at the public hearings within unprecedented timeframes and allows mining exploitation permits to be submitted. The key work streams for the rest of the year include continuing the Tomboronkoto village relocation studies and the submission of the Tomboronkoto and Bantako exploitation permit applications, both of which we expect to file within the coming weeks and expect to be granted during H1 2027. And that concludes the operational update and I'll hand you over to Dave to talk through the financial summary.

15:37 Thanks, Gavin. I will begin by taking you through the key financial outcomes for the September quarter. Overall, Resolute remains in a strong financial position. The business continued to generate healthy operating cash flow while funding increased investment in Doropo and our broader growth portfolio. At quarter end, net cash was $276 million and available liquidity was approximately $480 million. During Q3, we sold 33,000 ounces of gold at an average realized price of $4,325 per ounce. All gold continued to be sold at spot prices consistent with our unhedged position.

16:22 The timing of gold shipments affected reported sales volumes in the quarter as we ended the quarter with nearly 23,000 ounces of bullion on hand, which was sold shortly after the quarter closed. As a result, Q3 revenue was 143 million and EBITDA was 64 million. Operating cash flow before capital expenditure exploration and working capital was 56 million. This demonstrates the underlying cash generating capacity of the portfolio, even in a quarter with lower sales volumes. Group on sustaining costs was $2,506 per ounce compared with $2,484 per ounce in Q2. The result was broadly consistent with the prior quarter, with production and cost largely remaining stable.

17:14 As announced in the operational update in September, we have revised full-year group all-in-sustaining cost guidance to $22.50 to $23.50 per ounce, as we expect a stronger Q4 in SIAMA. Moving to the next slide, I will now walk through the principal movements in net cash during the quarter. We began Q3 with net cash of 317 million. The business generated 56 million of operating cash flow with a $6 million working capital inflow and VAT paid of 9 million. The largest cash investment was cap expense of 85 million, comprising 19 million at Sciamma, including 6 million for the SSCP, 3 million at Mako, including 2 million for the Mako Life Extension Project, 10 million of capitalized exploration expenditure, and $53 million at Doropo, as construction activity continued to ramp up.

18:10 After these movements, together with other financing and cash flow items, we closed the quarter with net cash of $276 million. Cash and bullion amounted to $330 billion at quarter end. This included $95 million of bullion on hand. Total borrowings were $54 million, including $29 million drawn under the Duropo financing facilities. The reduction in net calf from Q2 was driven primarily by the planned increase in investment at Duropo. Our capital allocation remains disciplined and focused on maintaining our operating assets while advancing the projects that will support Resolute's next phase of growth. As mentioned earlier, Duropo remains on track and on budget.

18:57 During Q3, CapEx increased in line with expectations with the year to date spend at Duropo of $93 million. At the end of Q3, we have committed approximately 315 million or 61% of the total project capital budget of 516 million. Post quarter end, we completed the full local financing arrangements for Duropo with 260 million of credit facilities implemented. These facilities have attractive terms, including minimal security commitments and no financial covenants. As I had mentioned, at 30th September, we have drawn $29 million from these facilities. The remaining funds are expected to be drawn progressively through 2026 and 2027, in line with the Project CAPEX profile.

19:47 Together with Resolute's existing balance sheet and operating cash flow, they provide sufficient liquidity to fund the development of Duropo under current market and regulatory conditions. At Mako, capital investment continues to support the life extension project while maintaining discipline, sustaining expenditure. At Sciamma, investment remains focused on operational reliability, the SSCP and infrastructure required to improve production performance. At 30 September, Available liquidity was approximately $480 million. This provides substantial financial flexibility as we execute our near-term operating priorities and fund the construction of Duropo. In summary, Resolute closed the September quarter with a strong balance sheet, positive operating cash generation, and a well-funded growth program.

20:39 Our immediate priorities are clear. improve operating performance at Sciamma, maintain MACO's cost discipline, complete the commissioning of the SSCP, and continue the safe on-budget execution of Duropo. With substantial liquidity and unhedged gold position and the Duropo financing now fully established, we are well positioned to look to deliver these priorities and create long-term value for shareholders. With that, I'll hand it back to Chris.

21:11 Thank you, David. So in conclusion, the business is making very good progress in achieving its milestones. I'm very pleased to say that Doroco is staying on track, on budget, fully funded, with an anticipated first goal of production in the beginning of 2028. We're also advancing our organic pipeline across the business, with ABC drilling progressing very nicely as well as kicking off expansion study work at Daropo. We're maintaining a very healthy balance sheet with a net cash position of $276 million in addition to the financing facilities that were secured in the second quarter. So that means that the business is very well positioned in order to achieve its target of 500,000 ounces from 2028. So with that, I'll turn it back over to the operator for questions. Thank you.

21:59 Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you are dialed into the call and would like to ask a question, please signal by pressing star followed by the number one on your telephone keypad. Once again, if you would like to ask a question on the phone lines, please signal by pressing star followed by the number one on your telephone keypad. Our first question comes from the line of Flora Chan with RBC Capital Markets. Please go ahead.

22:26 Hi, good morning. Thanks so much for the call. I just have a couple of questions on my side. So just the first one, there was a pretty large difference between production and sales this quarter. Can you just talk to whether it's simply just a timing thing and can we expect a full catch up into Q4 or has there been any kind of logical logistical constraints getting gold out of the country?

22:50 Morning, Laura. So Chris here. So look, it is exactly as you said, it's a timing issue.

22:56 So no constraints.

22:57 It happens from time to time. We've seen in the past, we've actually sold more gold than we've poured in and vice versa. So yes, we would expect to catch up at the end of the quarter. But again, it depends on, I haven't checked the calendar, what day December 31st falls on and exactly when we plan to ship the final gold shipments. But generally, we'll catch up.

23:19 Okay, understood. And look, how much waste stripping at Siama has been deferred into 26 and what's the kind of catch-up requirement in 27? And how are you thinking about that impacting production into next year?

23:33 Yeah, so we had originally planned to do about $30 million in waste stripping as we opened up the A21 pit. But we are now in the process of looking at our 27 budget and aligning with our models to make sure that it makes sense that's all that stripping next year or to do it in a more deferred basis. So we will hopefully have stripping next year. Some of the stripping that didn't happen this year was due to the equipment challenges as well as explosive issues that we had at the beginning of the year. So we do plan to catch up. but we'll have to wait till we issue our guidance in order to give a proper number. So look, I don't think it'll be 30 million for next year. It'll be less than that, but I don't have a good number in front of me right now as to what we plan for next year and waste dripping.

24:16 Okay, understood. And sorry, just two more from my side. On Darapo, what is the quarterly kind of CapEx phasing there through 2027? And what are the key risks that you're seeing into construction over the next kind of 12 months?

24:31 yeah look on the capex spending it's going to be pretty consistent and again i think we're budgeting around 300 million dollars of capital next year but it just has what's hard with this too is the timing of the cash payments um we've been able to work with our vendors to put in deferral days that's why we're probably going to spend less in original guidance this year um so that's why you know it should be pretty smooth moving forward but again we'll have to come back to you with specifics on the exact numbers as we just finish off the year and be able to project into next year um but maybe I'll turn it over to Gavin to give context around some of the key risks that he sees around the project for next year yeah thanks Chris um hi Laura look we really haven't had uh too many issues uh going forward so far um the the supply chain is is very good going into um

25:25 into Cote d'Ivoire. I think the only acknowledgement we have on that at the moment is that the port at Abidjan is very busy, obviously, with a lot of construction projects going on in Cote d'Ivoire, not just only in mining, but in a number of other sectors. And obviously, a lot of transportation going in there for Mali now. So we have seen a backlog of about four weeks, which is obviously a lot longer than we would normally expect for clearance through customs and out of ports. But outside of that, I guess the only other challenge we have is probably going to be around water, which we're de-risking by advancing the water storage, harvest and tailings embankments well ahead of the wet season to make sure we maximise capture for next year.

26:16 Okay, great, understood. And just last one, could you just talk about the underlying cost inflation that you guys are seeing through the business, be it, you know, in Mali with the contractor rates, consumables, energy, any kind of color would be quite helpful.

26:30 Yeah, look, the main inflationary that we've seen has been on fuel, which we picked up at the beginning of the year, which we saw prices increasing from 30% to 60%. That's somewhat stabilized, so we haven't seen any further increases on the fuel pricing. We are, as we're looking now into the mine plan for Samoa, evaluating all of our contracts. And there's some slight increases, but generally we're actually going the opposite way in reducing the cost profiles across the assets. I don't know if you picked it up, but like our ASIC, this quarter was less than last quarter. And specifically at MACA, where we had poured less ounces, we're actually able to reduce our cost profile. So yes, we are seeing some cost inflation, but as we look on a year by year basis, we expect us to be able to manage the costs with the exception of fuel in order to kind of keep a flat to down ASIC profile moving into next year.

27:29 Okay, great. Thanks so much, guys. I'll pass it over to someone else. Thanks, Laura. Our next question comes from the line of Fred Spencer with Canaccord. Please go ahead.

27:40 Thanks. Good morning, Chris. Thanks for the opportunity to ask questions. Just briefly, I'm quite curious about how you're thinking about capital allocation because Kilosega is something quite new and obviously having some success at Ledevo and then you've got ABC in your back pocket as well. The ROPO is obviously the near-term growth plan, but clearly Kilosega and Ledevo look like potential mining operations in their own right and then you've got ABC as well. How are you? if they all come in and studies and permitting and financing allow, how do you think about the potential sequencing of possible development of those additional assets?

28:23 Yep. Evening, Reg. That's a very good question because we think that all those projects can create substantial value for the business. So, look, next year is pretty clear in that the capital will be focused on development of Doropo, which, again, off the top of my head, has run circa $300 million. We are increasing... expenditures for drilling and ABC Works, and that'll be committed. And that's going to be probably in the tune of $40 million next year. The study work at Kilisegi is being kicked off, and we anticipate to have a scoping study in the first half of next year, which will then provide visibility on the exact capital required to possibly build a second plant up at the robo. But that capital expenditures wouldn't come in until probably 29, maybe end of 28, because we would have to go through converting the scoping study to a feasibility study, then also getting the permits in place, which could all take a year or two. So we see the expansion of Daropo happening more in 29, which would be self-funded from the Daropo cathlos.

29:26 And then look, ABC, if the stars align, we would also look to try and have that finalized by the end of next year with a feasibility study, kick off the permitting, whereby we could start construction of the ABC project in the back half of 28, also with the intention of being funded by the Doropo cash flows, because Doropo, once it's operating, should produce over four to $500 million in fresh cash to help fund these projects. We've also been very active in working with financing facilities who are very interested in providing debt facilities for all of our projects, both in Senegal and in Cote d'Ivoire. So I'm not too fussed around the ability to get cash if needed to build these projects because the rates of returns are so attractive. The payback periods are between one and one and a half years, if not less than that.

30:14 So I can't give you an entire call it visibility in our capital allocation because we haven't done the study works for ABC and Kilisegi, but we do have good visibility into next year. The other slightly complicating aspect too is we have capital requirements in Senegal. with the expansion and extension of the satellite deposits that will feed the plant. But most of that capital won't start to get spent into the end of next year. So really next year, from what we know today, it's very much Doropo construction and exploration and study work for ABC and Kilosegi.

30:56 Okay, geez, well, you can take a breath now, Chris. No. Quite a lot going on. No, it's actually a really good problem to have. And, you know, Killer Sager obviously is a little bit new to me, as is Ledevo, and it wasn't quite, you know, it wasn't quite... The Mining Limited Is it safe to presume that the situation has settled down a little bit?

31:49 And can you provide some comments on, you know, transport and materials, equipment, labor, the general security situation of fuel in Mali as it stands?

32:01 Yeah, but maybe it'll be easier. Gavin, do you want to maybe give color on those points?

32:07 Yeah, that's fine. Look, I think we all acknowledge Mali's a challenging place to be operating and general supply chain is a lot longer than you would see in the other countries we're working in. So we do still have challenges, I guess, getting things through in a timely sort of position. The fuel has not been an issue for us, to be perfectly honest. We're bringing in a lot of fuel from Côte d'Ivoire. so that's not so much of an issue because we're quite close to the border there about two hours and it's been relatively easy for us to get in there so we've had no real disruptions to fuel other than obviously the inflation and the cost that we're paying for the fuel at this stage. Explosives continues to be a challenging one because obviously getting permits to move explosive products across borders from Côte d'Ivoire and Ghana has been challenging And then the other, the original plan after Orica exited the country in 2025 was bringing in explosives from Lulut, which is obviously in a very sort of challenging region at the moment in terms of security.

33:12 So those have really been the holdups for us with the plant now being on site. And like I say, we were expecting to pour next week for our first manufacturing, our first explosive product next week. Once that happens, we should have no real restrictions on explosives because all the precursor materials coming in are a lot easier to get transported around the country. Other sort of issues around Mali, I guess there's still challenges within contractors being able to get hold of equipment and obviously import things into Mali. There's a lot of risk from external foreign suppliers requiring sometimes 100% upfront payments for all products before they'll import them into Mali.

34:01 So yeah, I think general stability right now is good for us. Obviously, those supply chain routes have been morphing over the last sort of 12 months to reduce our reliance on products coming in, I guess, from the port over at Dakar and having to transport right the breadth of Mali. But again, we still do have times where there are things outside of our control. There was, for example, there was a 60 kilometre line at the border of trucks waiting to get into Mali. So again, just disruptions within their own sort of administration departments and everything and customs and importations has been challenging as well. So we keep a close eye on it, but it's anyone's guess at from a week-to-week position as to how complex or how challenging it could be.

34:52 And some weeks, it's absolutely fine. Other weeks, it can turn quite quickly. So we're conscious that there is going to be continued disruption, but that's the normal operating case, I think, for Mali at this stage.

35:09 Thank you. I appreciate that. I just feel like the tone of your quarterly report suggested that things had stabilised somewhat. And obviously, with your backup plans, with the emulsion plans and explosives, it gives you a bit of a plan B. But that's really helpful. I've got a bunch of other questions, but I might take those offline, Chris, through an email or something like that. But I appreciate the opportunity to chat. Thanks very much. Our next question comes from the live chat for Mainwaring with Barenburg. Please go ahead. Good morning, all. Just one for me. I guess, given you've got a number of permits and approvals working in the background against a global backdrop of projects that are being pushed out to the right due to permitting, do you just talk through if you see any risks here or are you still quite confident in your timelines?

36:08 Thanks.

36:11 No, look, I think I think you're absolutely right. That is obviously an area of concern because it's outside our control. But I am confident that we are making good progress on getting our permits because, look, in Senegal, it's not a very sizable mining community. And the new minister of mines is Much more pro-investment activities. So I had a chance to meet with him a few weeks ago, and I'm getting the right signals that we'll get our permits fast-tracked in Senegal. So I feel very confident with that country. In Cote d'Ivoire, it consistently stays the same with regards to wanting international investments. So as we get ready for filing for permits for both ABC and possibly the Duropo expansion, Again, we have high confidence that we can work with our relationships to expedite those. So it is a risk, something we think about, but compared to other countries in the region, I'm confident that both Cote d'Ivoire and Senegal will do the right things. And look, in Mali, we've actually seen quite a bit of progress with the cadastra opening up and permits starting to be reissued and renewals.

37:18 We don't have any permutations in Mali, but it also speaks to the fact that Molly is trying to also change the perception and attract international investments. And we're maintaining very, very constructive and productive dialogue with the government. So, you know, where we operate today, I'm feeling quite comfortable that we have the right relationships in place to get the permits we need. Okay. Very clear. Thank you. I'll pass it back. Our next question comes from the line of Regan Burrows with Macquarie.

37:52 Please go ahead. Hi, Chris and team. Thank you for taking my questions. First one's just on to Roppo. Obviously, the debt financing coming through is positive. sort of wanted to get your feeling around obviously the remaining balance being roughly, as you said, nearly $300 million to be funded through sort of existing liquidity and cash flow moving forward, given that you've got also quite a few irons in the fire with other projects and expenditure on other options going ahead. How do you sort of feel about that balance being met?

38:32 Yeah, no, it's a good question and evening. So look, we obviously trying to provide enough liquidity in the balance sheet to be overly funded. And we see that today at above $4,000 gold price with the cash we have on hand, future cash flows from operations and the deficit is what we're fully funded through the end of next year. And that's what also captures the expenditures that we plan to spend at ABC. And look, once we get into operations in 2028 with Daropa, we'll start generating meaningful cash flows, which will then, like I said, fund predominantly the rest of the projects should we go ahead with them. So that's why we're feeling very confident in our liquidity situation at this stage. We do plan to continue to draw down on those debt facilities because they're very attractive and and they're effectively cash neutral and there's tax benefits in doing the drawdowns.

39:22 So we're not going to look to increase those debt facilities at this point, but we may look to put in other debt facilities in the future. This would be in 28 or 29 to possibly fund some of the other capital projects. So look, it's a dynamic situation with the gold price, but at these current levels and with our models for what we see for next year, we're well covered.

39:48 Thank you. And I guess just on Siama at the moment, with the emulsion plants wrapping up over the next couple of weeks, are there any sort of bottlenecks outside of the raw ingredients that you import that could potentially trip you up there? I mean, things like detonators and stuff like that, have you got sort of ample visibility on deliveries for that?

40:13 Look, I guess to what Gavin highlighted in the previous question, you know, There's lots of requirements we need for the site. We feel, from a supply chain perspective, that we've been mitigating as many of the risks as we can. But it doesn't take one or two events to disrupt the supply chain activities. But today, we're a lot more comfortable with regards to explosives. We are focusing on all the ancillary products required between detonators and cords that are necessary to meet the needs of the site. We're also working very closely with our contractors to make sure they're getting the right equipment and the people So I wouldn't say there's one or two other items that we're focused on. We're focusing on all of them, to be honest. So look, we have good visibility between now and the end of the year. I think what we're more focused on at SIAMA is with the completion of the SSEP is just being intelligent about the mining schedule for next year's and the years beyond to maximize cash.

41:05 and to provide a stable set of operating environments so that we can really think about future growth in that country. Because again, Siam has enormous amount of gold in the ground. That hasn't been the problem. It's just been the sequencing and dealing with the complicated dynamics at existing country. It's been a quiet period, which has been good. But sometimes that gives us concern that things may get complicated. But at this stage, we're feeling more confident that we've got our arms around the business.

41:37 Thank you. And one more, I guess, if I could just squeeze it in there in terms of ramp up and site, obviously bringing in the new fleet and additional contractors. Has there been any issues or anything? Is everything sort of traveling well there from an introduction point of view, bringing that new contractor on? And with the fleet that was sort of required, how much have you got versus how much do you need now?

42:08 Yeah, look, I'll start, maybe then I'll turn it over to Gavin for some of the more specifics, but it's been a work in progress for roughly nine months, to be honest, on the contractors, because we had challenges to one contractor at the beginning of the year. We brought it in a second. They were slow to mobilize their equipment and then also getting the right people in place, but that is progressing much better. That's why we were able to achieve the right production targets and levels in September and what we're anticipating for Q4. But we do have a series of additional pieces of equipment that are coming to site and barring any constraints at the border, we should be okay for 2027. But I don't know, Gavin, if there's any other specifics you want to highlight.

42:49 I think we're about 75% mobilised now in terms of the second contractor that's come on at day 21 and we're expecting based on their revised mobilisation plan to have everything in place by the end of the year so going into 2027 we should be in a reasonably strong position I think one thing to highlight here that probably isn't as well communicated or understood is that as part of the new mining code in Mali and the local content restrictions with these heavy penalties and rules that we have to adhere to within Mali when appointing contractors. And obviously that's sort of excluding a lot of international contractors that are probably at a bit higher level and set the standard a bit higher.

43:34 So they will effectively walk out of country. So we are having to rely on local partners and we're having to work with them to bring them up to what we would consider Western standards. So there's a lot of challenges there with the internal contractors. But again, it's something that we work through. And obviously, we just need to take that time to get them up to where we expect them to be.

44:02 Great. Thank you very much for taking my questions. I'll leave it there. Our next question comes from the line of Richard Knight. Please go ahead. Thanks for the call, gents. I just wanted to follow up on Regan's question just on the amount of headroom you've got. I mean, I suppose everything looks pretty good now, but we are in a falling gold price environment. And I'm just wondering where you see your debt capacity at and what sort of gold price you would need to see in order to sort of start thinking about maybe... maybe increasing that debt facility?

44:49 Yeah, look, You know, the planned EBITDA for this year, again, I'm speaking roughly off the top of my head, is probably around six, seven million dollars. And so we're effectively have less than a half a turn of leverage on the business with what we've put in place. We know we can increase that if we needed to. But we're also cognizant that we don't put too much leverage on the business at this stage. So look at what I said before at four thousand dollar plus gold price. We're very well funded. If we were to drop back down to three thousand, we'd have to think about. capital to fund the business, but I don't have a shortfall at this stage that I can provide publicly. But we also have levers that we can pull. Obviously, in the business, we can defer the capital spending at ABC, and we can obviously defer some of our other capital projects and keep the ROPO fully funded all through next year with what we can do.

45:44 So that's why I'm not too fussed around this stage getting additional capital in the business because of flexibility that we have in what we've got today. And we have been offered additional financing terms under the current environment that we could add more debt to the business if we chose to. So we have a few options there. Yeah. Yeah. Okay. Yeah, that's great. Thanks. Just wanted to ask a question also on SciArm, just to get a bit of a better feeling about what the grade trajectory is going to look like over the next couple of quarters. Obviously, you know, it's improved last quarter and the SSP should be up and running in full swing next quarter.

46:30 But, you know, should we think about the project producing at reserve grade from next quarter or how should we think about it?

46:39 Yeah, maybe Gavin, is that one you're probably a bit closer than I am on that one.

46:44 Yeah, look, I think some of the challenges we've had around grade is that we've been processing a lot more low grade. Obviously, we haven't been able to break as much material with not having the explosives. So certainly as we go forward, we'd expect to see the grade getting closer back to that reserve grade. Obviously, the development of A21 pit has now gone through sort of the oxide and the transitional zone in the first stage. So we're getting down into the better sulphide grades So, yeah, I think it's fair to assume that going sort of towards the end of this quarter and kicking off into 2027, we should see that grade returning up around the reserve grade. Yeah, OK, thanks. And recoveries as well. I mean, should we expect recoveries to be, you know, edging up as well? I think it was literally 73% this quarter.

47:38 Yeah, so we've got obviously a function of higher grade is going to give us better recoveries. It's obviously a lot harder at the lower grades to to maximise recovery. But we've got a part of our corporate technical team. We've been investing a lot of time into Mally in the last three or four months, working through mill optimisation and working with the team to improve on that. So we're starting to see better recoveries through sort of the end of September into October now. and I'm hopeful that we'll see closer to 80% rather than 70% by the end of this quarter and certainly as we go forward into 2027. Yeah. Okay. Brilliant. That's great. Thanks. Thanks, James. Thank you for all the questions today. That concludes today's call.

48:26 You may now disconnect. Have a good day.